Renting a House

The Jack family already has enough saving for down payment of a house, it accounts
for 30% of the planned home value.
Other data include:

Taxable income of Jack: 650 million vnd (Deductions for 2 kids allowances calculated
for Jack)

Taxable income of Jack’s wife: 280 million vnd

Telephone & Internet and other digital platforms bill paid for month: 1,2 million vnd

Food and Groceries for month: 12 million vnd

Restaurant spending for month: 2 million vnd

Payment for electricity and other fees for month: 2,5 million vnd

Montly payment for car loan: 4,5 million vnd

Personal care for month: 3 million vnd

Medical expenses for month: 2,5 million vnd

Entertainment for month: 2 million vnd

Monthly payment for education: 8 million vnd

Transportation expenses for month: 6 million vnd

Miscellaneous expenses for month: 3 million vnd

QUESTION:

Calculate the affordable home purchase value if he plans to use conventional monthly
mortgage product from bank with 20-year tenors, 8,5%/year.

Hints:

To estimate a house purchasing value:

+ Calculate your income

+ How much you have for a down payment

+ Calculate your current living expenses, your total expenditures (living

expenses, tax, other debt payments….)
+ Calculate affordable monthly uses for mortgage payment

+ Calculate mortgage amount from affordable monthly mortgage

+ Calculate a house purchasing value from mortgage amount and down

payment