Eli is buying a townhouse that costs $276,650. He has $28,000 in savings and earns $4,475 a month. Eli would like to spend no more than 30% of his income on his mortgage payment. Which loan option would you recommend to Eli

30 year fixed, 10% down at a fixed rate of 5%

Explanation:

given data

buying a townhouse = $276,650

savings = $28,000

earns a month =  $4,475  

solution

when here 10% down fix rate than cover for the down payment is

cover for the down payment = 10% of $276,650

cover for the down payment = $27,665

and here monthly income is $4,475

so mortgage will be  = 30% of $4475

mortgage  = $1,342.50

so by balance of mortgage is = $276,650 - $27,665

balance of mortgage = $248,985

so Total monthly repayment is

Total monthly repayment = $248,985 ×  +  

Total monthly repayment = $1037.45 + $691.63

Total monthly repayment = $1729.08

so 30 year fixed, 10% down at a fixed rate of 5%

answer; erp systems;