After an intensive search, Philip has narrowed his choices to four houses. Now he wants to buy the one that fits his budget. He has saved $40,000 for the down payment. Use the fixed-rate calculator to find the monthly payment for each house.
В І у хх, Font Sizes A - A E EA E 를 필
House Purchase Price Monthly Payment Affordability
A
$250,000
B
$200,000
С
$195,000
D
$180,000
You can see that Philip can afford only house D. Calculating a monthly budget to determine the affordability of your home works best with a
fixed-rate mortgage. You can use a monthly budget for ARMs, but you must recognize that after a certain period, the monthly installments
will vary as interests rates change.