Harrison is ready to purchase his first home. Current interest rates for a fixed, 30 year mortgage are 3.6%. He wants to pay no more than $750 per month on his home. How expensive of a home can he afford?

Question

Mathematics

Cora

8 August, 17:27

Harrison is ready to purchase his first home. Current interest rates for a fixed, 30 year mortgage are 3.6%. He wants to pay no more than $750 per month on his home. How expensive of a home can he afford?

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Rashad Ochoa · Answer 1

750x12x30x1.036

=$279720.00

this works by:

we can pay 750 per month so times 12 as there are 12 months in a year. the mortgage is for 30 years so times 30, and then the mortgage is 3.6 so times 1.036 (=100%+3.6%)