Marcus can afford a monthly mortgage payment of $900. if he is eligible for a 30-year, 5% mortgage (where the mortgage factor is

Question

2 years ago

6

5.37), how much of a mortgage loan can he afford?

1 answer:

mamaluj [8] · Answer 1 · 2023-04-21T04:51:08+03:00

Answer: Marcus can afford a loan of $167,597.76.

The mortgage factor tells us the monthly principal and interest rate payable for each $1000 of a loan.

Since we know the mortgage factor and the amount Marcus can make each month, we can determine the number of $1000 in his loan amount.

We do this by $\frac{900}{5.37} = 167.5977654$

This means that Marcus' loan will have 167.5977654 thousands.

Therefore we can find the amount of mortgage loan as

$167.5977654 * 1000 = 167597.7654$