# Answer to Question #65914 in Microeconomics for Jonny Deng

Question #65914

You find a nice condo and town home to purchase and are willing to put 10% of the purchase price down. You have a good job and strong income with limited expenses. You don't even own a car, a decision you made at the margin in order to save for the down payment. Your monthly mortgage payment will be $1200 which is more than your rent of $900. You will be charged an interest rate of 6% on a fifteen year mortgage. All things being equal in terms of a sound financial decision your _____________ on the home should exceed your cost of borrowing.

Expert's answer

If your monthly mortgage payment will be $1200 which is more than your rent of $900 and you will be charged an interest rate of 6% on a fifteen year mortgage, then things being equal in terms of a sound financial decision your payment on the home should exceed your cost of borrowing.

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

## Leave a comment