Can you show the steps

5. Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation (see [ Exhibit 7-6). ( LO7.3) Monthly gross income, $2,950 Down payment to be made-15 percent of purchase price Other debt (monthly payment), $160 Monthly estimate for property taxes and insurance, $210 30-year loan at 6 percentExampl Exampl e A e B it will Step 1: Determine your monthly gross income $48,000 $48,000 (annual income divided by 12). : 12 : 12 Step 2: With a down payment of at least 5 $ 4,000 $ 4,000 percent, lenders use 33 percent of monthly gross income as a guideline for PITI (principal, X 0.38 X 0.33 interest, taxes, and insurance) and 38 percent of monthly gross income as a guideline for PITI $ 1,520 $ 1,320 plus other debt payments. Step 3: Subtract other debt payments (e.g., -380 payments on an auto loan) and an estimate of Othe monthly costs of property taxes and -300 -300 homeowner's insurance. (a) Affordable monthly mortgage payment 840 1,020 Step 4: Divide this amount by the monthly : $ : $ mortgage payment per $1,000 based on 5.37 5.37 current mortgage rates-an 5 percent, 30-year loan, for example (see Exhibit 7-7)-and x $ x $ multiply by $1,000. 1,000 1,000 (b) Affordable mortgage amount $156,42 $189,94 5 4