Using Personal Financial Planner Sheet 43, Housing Mortgage Affordability, calculate the affordable mortgage amount that would be suggested by a lending institution and based on Jamie Lee and Ross’s income. How does this amount compare with the traditional financial guideline found in Question 2?

Use the following amounts for Jamie Lee and Ross’s calculations:

10 percent down payment 28 percent for TIPI

$500.00 per month for estimated combined property taxes and insurance 5 percent interest rate for 30 years (found in Exhibit 9-9 table)