To determine the minimum yearly income required to keep housing expenses in an acceptable range, we typically use the guideline that housing expenses should not exceed a certain percentage of your income. A common standard is that housing expenses should not exceed 28% of your gross income.
Given that your monthly mortgage payment is $954.32, we first need to find the annual mortgage payment:
\[ \text{Annual Mortgage Payment} = \text{Monthly Payment} \times 12 \] \[ \text{Annual Mortgage Payment} = 954.32 \times 12 = 11,451.84 \]
Next, we want to set up a proportion where 28% of your income (let's call it \(x\)) is equal to your annual mortgage payment:
\[ 0.28x = 11,451.84 \]
To find \(x\), we can rearrange this equation:
\[ x = \frac{11,451.84}{0.28} \]
Now, calculating the right side:
\[ x = 40,184.43 \]
Thus, rounding to the nearest penny, the minimum yearly income required to keep your housing expenses in the acceptable range is:
\[ \text{Minimum Yearly Income} = 40,184.43 \]
So, you would need a minimum yearly income of $40,184.43.