FIN 3300

 Married couple earning a combined gross income of $130,000 and an after tax income of $107,000 are looking into purchasing a house. They would like to put 5% down. They have shopped around for a loan and believe the best terms that they could get are a fixed rate of interest equal to 5% for 30 years. Private Mortgage Insurance is equal to 1.4% for the first year and .22% thereafter. They will have to pay 2 points, $500 in fees, and title insurance equal to $3.10 per thousand.