What is the price range of houses that they should consider

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Reference no: EM131825437

Purchasing a Home The Johnsons have accumulated a savings of $25,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $800 per month in the monthly payments (to take advantage of their tax deductions) toward the purchase of their house. However, because of their financial obligations, their monthly payments should not exceed $1000. If local mortgage rates are 4.5% per year compounded monthly for a conventional 30-year mortgage, what is the price range of houses that they should consider? (Calculate by using Excel Formulas)

Reference no: EM131825437

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