s. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross m me and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans a bans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. The un every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothi ector's grandparents have said they will give them a 20% down payment for the new home. have found a very nice town house available for $300,000. Assuming a 20% down payment and a 30-year fixed rate mortgag will their PITI be? Annual property taxes are $2,800, the power bill is $1,500 per year and homeowner's insurance premium 367 68

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 1DTM
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Hector and Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-
national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three
years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly
income and pay 40% in taxes and withholdings every month. Between them thay have monthly payment of $400 in student loans and $700 in
car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to
Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings
but Hector's grandparents have said they will give them a 20% down payment for the new home.
They have found a very nice town house available for $300,000. Assuming a 20% down payment and a 30-year fixed rate mortgage at 5.50%,
what will their PITI be? Annual property taxes are $2,800, the power bill is $1,500 per year and homeowner's insurance premium is $1,000 per
year.
Ⓒ$1,362.69
$1,804.35
$1,679.35
$1.558.93
Transcribed Image Text:Hector and Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi- national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them thay have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. They have found a very nice town house available for $300,000. Assuming a 20% down payment and a 30-year fixed rate mortgage at 5.50%, what will their PITI be? Annual property taxes are $2,800, the power bill is $1,500 per year and homeowner's insurance premium is $1,000 per year. Ⓒ$1,362.69 $1,804.35 $1,679.35 $1.558.93
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