Victor earns a gross annual income of $93,571 and is buying a home for $196,300. He is making a 15% down payment and financing the rest with a 30 year loan at 4.25% interest.
(a.) What is the mortgage amount he will borrow? Show your work.
(b.) Can he afford this mortgage? Justify your response.
(c.) What will his monthly mortgage payment be? Show your work.
(d.) What will his total payment for the house be? Show your work.
(e.) What is the amount of interest he will pay? Show your work.