Question
In: Finance
Your lender now offers you a 30-year fixed-rate home mortgage with 3.6% interest rate per year....
Your lender now offers you a 30-year fixed-rate home mortgage with
3.6% interest rate per year. If you can afford a monthly payment of
$2279 , what is the maximum loan you can get? (Round to the nearest
dollar.)
Solutions
Expert Solution
$ 501,270
| Loan amount is the present value of monthly payments which is calculated as follows: | ||||
| Present Value | = pv(rate,nper,pmt,fv) | |||
| = $ 501,270 | ||||
| Where, | ||||
| rate | = | 3.6%/12 | = | 0.003 |
| nper | = | 30*12 | = | 360 |
| pmt | = | $ -2,279 | ||
| fv | = | 0 |
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