You have decided to buy a house. You can get a mortgage rate of 5.75 percent,...

You have decided to buy a house. You can get a mortgage rate of 5.75 percent, and you want your payments to be $1,050 or less. How much can you borrow on a 15-year fixed-rate mortgage? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Mortgage Amount:_______

Solutions

Expert Solution

PV =

n = 15 * 12 = 180 months, r = 5.75%/12 = 0.4792% (monthly)

PV = 1050 * 120.4224

PV = $126,443.55

jeff jeffy answered 2 years ago

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