Consider the following information:

Sale price of the house: $$180,000$

Property insurance: $0\mathrm{.}6\%$ of house value

Property tax: $1\mathrm{.}2\%$ of house value

Mortgage terms: LTV $=90\%,30$ year, $12\%$ interest, monthly payments

Monthly other debt $($car$/$student loan, credit cards, etc.$)$: $$600$

Front ratio: $28\%$

Back ratio: $36\%$

Compute: a$)$ Front$-$end qualifying income; b$)$ Back$-$end qualifying income.

$89.$ Consider the following information:

A Annual income: $$80,000$

$>$ Property insurance: $0\mathrm{.}5\%$ of house value

Property tax: $1\mathrm{.}5\%$ of house value

Mortgage terms $($most likely$)$: LTV $=80\%,30$ year, $8\%$ interest, monthly payments

Monthly other debt $($car$/$student loan, credit cards, etc.$)$: $$500$

Front ratio: $28\%$

D Back ratio: $36\%$

Compute: House price that makes a prospective home buyer qualified for the mortgage via: a$)$ front ratio; b$)$ back ratio.