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Suppose you take a 10-year mortgage for a house that costs $207,304. Assume the following: The...

Suppose you take a 10-year mortgage for a house that costs $207,304. Assume the following:

  • The annual interest rate on the mortgage is 3.7%.
  • The bank requires a minimum down payment of 7% of the cost of the house.
  • The annual property tax is 1.7% of the cost of the house.
  • The annual homeowner's insurance is $529.
  • The monthly PMI is $60.
  • Your other long-term debts require payments of $1,489 per month.

If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 36% rule?

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