To determine the minimum realized income per month needed to afford a mortgage payment of $1,275.00, we generally consider that a common guideline is that your mortgage payment should not exceed about 28% to 30% of your gross monthly income.
Using the more conservative figure of 28%, we can set up the equation as follows:
\[ \text{Mortgage Payment} = 0.28 \times \text{Gross Monthly Income} \]
We can rearrange this to find the Gross Monthly Income:
\[ \text{Gross Monthly Income} = \frac{\text{Mortgage Payment}}{0.28} \]
Substituting in the mortgage payment:
\[ \text{Gross Monthly Income} = \frac{1,275.00}{0.28} \]
Now, let's calculate it:
\[ \text{Gross Monthly Income} = \frac{1,275.00}{0.28} \approx 4,553.57 \]
Rounding to the nearest penny, the minimum realized income per month would be:
\[ \text{Gross Monthly Income} \approx $4,553.57 \]
Thus, the answer is approximately $4,553.57/month.
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