In a more realistic situation assume that the down payment


Question

In a more realistic situation, assume that the down payment is at least 10% of the house value you can put down more if you wish).

Moreover, there are yearly municipal taxes which are 1.5% of the house purchase price per year. There are also "closing fees" (things like lawyer costs, moving expenses etc) estimated to be at $6000.

You have a maximum of $10,000 in savings that you can use for a downpayment and closing costs. And you can afford a maximum of $1000 of monthly payments towards the house (that is, mortgage+taxes).

What is the maximum price of the house you can afford if you wish to pay off the mortgage in 25 years?

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Financial Management: In a more realistic situation assume that the down payment
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