9 Assets (Jamie Lee and Income : Ross combined) : Gross income (Jamie Checking account $6, 200 $64 , 000 Lee) Net income after taxes Savings account $57, 100 $44 , 800 (Jamie Lee) points Emergency fund savings $21,000 Gross income (Ross) $89 , 000 account Net income after taxes IRA balance $25, 900 $75 , 650 (Ross) Monthly Expenses eBook Car (Jamie Lee) $13, 900 (Combined) : Car (ROBS ) $21,900 Utilities $140 Liabilities (Combined) : Food $315 Student loan balance $0 Gas/Maintenance $225 Print Credit card balance $0 Credit card payment $0 Car loans $9,900 Car loan payment $308 Entertainment $395 References Step 1 Determine your monthly gross income (annual gross income / 12) $64,000.00 Step 2 With a down payment of at least 5%, lenders use 33% of monthly gross income as a guideline for PITI (principal, interest, taxes, and insurance) and 38% of monthly gross income as a guideline for PITI plus other debt X payments, Enter 33% or 38% depending upon whether other debt payments are present. Step 3 Subtract other debt payments (such as payments on an auto loan), if applicable. Subtract estimated monthly costs of property taxes and homeowner's insurance, Affordable monthly mortgage payment Step 4 Divide this amount by the monthly mortgage payment per $1,000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 10%, Mc Graw Hill