Question

A couple wished to buy a house and would pay an annual mortgage payment of $26,000....

A couple wished to buy a house and would pay an annual mortgage payment of $26,000. What will be the minimum gross income required to buy the house ____?

Select one:

A. 92851

B. 92854

C. 92857

D. 92860

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Homework Answers

Answer #1

As per Conventional Mortgage, Annual mortgage payment should not exceed 28% of the Gross Annual Income.

- Annual Mortgage Payment = $26,000

Calculating the minimum gross Income :-

Gross Income = Annual Mortgage Payment/28%

Gross Income = $26,000/28%

Gross Income = $92,857.14

So, the minimum gross income required to buy the house is $92,857

Option C

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