You (or your parents) plan to pay $1,275.00/month for a mortgage. How much is the minimum realized income per month to the nearest penny? Round any decimals to the nearest penny.
To determine the minimum realized income per month needed to afford a $1,275.00/month mortgage, it is recommended to follow the 28/36 rule. This rule states that a household should spend a maximum of 28% of their gross monthly income on housing expenses and a maximum of 36% on total debt payments.
In this case, $1,275.00/month represents the mortgage payment. To calculate the minimum realized income per month:
$1,275.00 / 0.28 = $4,553.57 (minimum gross monthly income)
Therefore, the minimum realized income per month required to afford a $1,275.00/month mortgage payment is $4,553.57.