Question

Suppose you take out a 20-year mortgage for a house that costs $465,110. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 13% at the time of the loan. The annual property tax is 2.3% of the cost of the house. The annual homeowner's insurance is 1.2% of the cost of the house. The monthly PMI is $66 Your other long-term debts require payments of $657 per month. If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously?

Answer 1

=MAX((465110*(1-13%)*(4%/12)/(1-1/(1+4%/12)^(12*20))+2.3%*465110/12+1.2%*465110/12+66)/28%,(465110*(1-13%)*(4%/12)/(1-1/(1+4%/12)^(12*20))+2.3%*465110/12+1.2%*465110/12+66+657)/36%)
=13838.0149239