Suppose that the family income is $50000. Family finance experts recommend that mortgage payments not exceed 25% of a family's income. According to the experts, what is the maximum monthly mortgage payment this family can afford?

To find the maximum monthly mortgage payment that the family can afford based on the experts' recommendation, follow these steps:

1. **Determine the recommended percentage for mortgage payments:**
   The experts recommend that mortgage payments should not exceed 25% of the family’s income.

2. **Calculate 25% of the family's annual income:**
   \[
   0.25 \times 50,000 = 12,500
   \]
   So, $12,500 is the maximum amount the family can spend on mortgage payments per year.

3. **Convert the annual amount to a monthly payment:**
   \[
   \frac{12,500}{12} = 1,041.67
   \]
   The maximum monthly mortgage payment the family can afford is **$1,041.67**.

Would you like more details on any part of this process?

Here are some related questions:
1. What percentage of income would be ideal for housing-related expenses, including mortgage?
2. How does increasing or decreasing the percentage affect affordability in different income brackets?
3. What additional costs (e.g., insurance, property taxes) might affect a family’s total housing budget?
4. How does a family's mortgage limit change if income rises to $75,000 or $100,000?
5. How would interest rates influence monthly mortgage affordability?

**Tip:** It’s important to also account for additional housing expenses such as property taxes, insurance, and maintenance when budgeting for a home.

Suppose that the family income is $50,000. Family finance experts recommend that mortgage payments not exceed 25% of a family's income. According to the experts, what is the maximum monthly mortgage payment this family can afford?

Learn how to calculate the maximum monthly mortgage payment a family with $50,000 income can afford based on expert recommendations. This problem demonstrates percentage calculations and converting annual payments to monthly amounts. Ideal for students in Grades 5-7.

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