27).

a.b.

Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $44,400. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 70% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be $ b. The maximum monthly total credit obligations should be $ c. The maximum amount they should spend monthly on all other debt is $ The price of a condominium is $123,000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 9.5%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. STE PMT = -nt 1 - + a. Find the required down payment. b. Find the amount of the mortgage. $ c. How much must be paid for the one point at closing? $ (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. $ (Round to the nearest dollar as needed.)