Question

Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price...

Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.) Monthly gross income $ 3,400 Down payment to be made (percent of purchase price) 10 Percent Other debt (monthly payment) $ 215 Monthly estimate for property taxes and insurance $ 255 30-year loan 7.5 Percent

what is

Affordable monthly mortgage payment
Affordable mortgage amount
Affordable home purchase

Homework Answers

Answer #1
Monthly gross Income $3,400
38% of monthly gross income ( 3,400 x 38% or 0.38) 1,292
Other debt
Monthly payment 215
Taxes and insurance 255
a Affordable monthly mortgage payment(1,292 - 215 - 255 ) $822
Monthly mortgage payment per $1000 7.5%
b Affordable mortgage amount (822/7.5%)1000 $109,600
Down payment 10%
c Affordable home purchase(109,600)/(1-10%) $121,111.111

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