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.
1
Expert's answer
2017-03-06T14:01:06-0500
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 order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS