AFFORDABLE MONTHLY MORGAGE PAYMENT IS CORRECT.

PLEASE HELP WITH AFFORDABLE MORGAGE AMOUNT & AFFORDABLE HOME PURCHASE

*unfortunatly I submitted this question previously and recieved an incorrect answer.

Exhibit 7-6 Housing Affordability and Mortgage Qualification Amount Example A Example B $48,000 - 12 $48.000-12 $ 4,000 x 0.38 $ 1,520 $ 4,000 x0.33 $ 1,320 -380 -300 -300 840 Step 1: Determine your monthly gross income annual income divided by 12). Step 2 With a down payment of at least 5 percent, tenders use 33 percent of monthly gross income as a guideline for PITI (principal, interest, taxes, and insurance) and 38 percent of monthly gross income as a guideline for PITI plus other debt payments. Step 3: Subtract other debt payments (e.g. payments on an auto loan) and an estimate of the monthly costs of property taxes and homeowner's insurance. (a) Affordable monthly mortgage payment Step 4: Divide this amount by the monthly mortgage payment per $1.000 based on current mortgage rates--an 5 percent, 30-year loan, for example (see Exhibit 7-7) and multiply by $1,000 (Dj Affordable mortgoge amount Step 5: Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (0.9., 1 -0.1 with a 10 percent down payment) Id Affordable home purchase price $ 1.020 + $ 5.37 X $ 1.000 $ 5.37 x $ 1.000 $156,425 $189.944 +0.9 +0.9 $173,805 5211,049 NOTE The two ratios lending institutions use step 2) and other loon requirements may vary based on a variety of factors, including the type of mortgage the amount of the down payment, your income level, credit score, and current interest rates. For example, with a down payment of 10 percent or more and a credit score exceeding 720, the ratios might increase to 40/45 percent in this exhibit Term Rate 30 Years 25 Years 20 Years 15 Years 3.0% $422 $4,74 $5.55 $6.91 3.5 449 501 Exhibit 7-7 Mortgage Payment Factors (principal and interest factors per $1,000 of loan amount) 5.80 7.15 4.0 4.77 5.28 6.06 7.40 4.5 5.07 5.56 6.33 7.65 5.0 5.37 5.85 6.60 7.91 5.5 5.68 6.88 8.17 6,0 6.00 6.14 6.44 6.75 7.16 8.44 6,5 6.32 7.46 8.71 7.0 6.65 7.07 7.75 8.99 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56 YouTube Maps O News Translate a Amazon.com: Onli... Quiz: Chapter 6 Q. Saved Help Save & E Chei Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6. Exhibit 2-1 (Round your intermediate and final answers to the nearest whole dollar) Monthly gross income $ 3,475 Other debt (monthly payment) 30-year loan at 6 percent Down payment to be made (percent of purchase price) 15 percent Monthly estimate for property taxes and insurance $ 210 235 878 Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase $ $ $ 10,373 12,211