A potential homebuyer has an annual income of $40,000.?

Question

Assuming an affordable monthly mortgage payment of $850, what is the affordable mortgage amount at an interest rate of 7 percent for 15 years?

a. $127,820

b. $94,655

c. $91,314

d. $81,626

Answer 1

B.  The mortgage amount would be $94,655.

A- $127,820 at 7% interest for 15 years requires a monthly payment of $1,148.88.

B- $94,655 at 7% interest for 15 years requires a monthly payment of $850.79.

C- $91,314 at 7% interest for 15 years requires a monthly payment of $820.76.

D- $81,626 at 7% interest for 15 years requires a monthly payment of $733.68.

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