Mathematics, 16.04.2021 06:40 BaileyElizabethRay
1) Axle is interested in purchasing a home. Her ANNUAL income is $66 000. She can already afford to
make a $20 000 down payment on her home and is looking for a 7.5% interest rate. In this area, the
monthly cost for property tax is $150 and heating costs are $95. Based on the recommended GDSR of
32%, calculate Axle's maximum cost of a house that she can afford.
Gross monthly household income
Multiply (Gross Debt Service ratio)
Total affordable household expenses
32%
$150
Subtract
Monthly property taxes
Monthly heating costs
of condo/strata fees (if applicable)
Monthly affordable mortgage payment
Divide: Interest factor (from table below) -0.00732
Amount of affordable mortgage
Add: Cash down payment
$20,000
Maximum affordable home price
Answers: 2
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1) Axle is interested in purchasing a home. Her ANNUAL income is $66 000. She can already afford to...
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