csumate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 76. Exhibit 7-7. (Do not round Intermediate calculations, Round final answers to two decimal places.) Monthly gross income other debt (monthly payment) 15-year loan at Down payment to be made (percent of purchase price Monthly estimate for property taxes and insurance $3,100 $ 175 6 percent 15 percent $225 Answer is complete but not entirely correct. s 1,110.72 Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase s 1.458.50 1,301.49 s Exhibit 7-6 Housing Affordability and Mortgage Qualification Amount Example Example B $48.000 + 12 $48.000 - 12 Step 1: Determine your monthly gross income tannual income divided by 12). Step 2: With a down payment of at least 5 percent, lenders 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 2: Subtract other debt payments (e-9. payments on an auto loans and an estimate of the monthly costs of property taxes and homeowner's insurance $4,000 x 0.38 5 1.520 $ 4.000 x 0.33 $ 1.320 -380 -300 -300 $ 840 $ 1.020 (a) Affordable monthly mortgoge payment Step 4: Divide this amount by the monthly mortgage payment per $1,000 based on current mortgage rates-an 8 percent 30 year loan, for example see Exhibit 7-7). and multiply by $1,000 -$ 7.34 X$ 1.000 +5734 X $1,000 (b) Affordable mortgage amount $114.441 $138.965 0.9 -0.9 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). $127.157 $154,405 (c) Affordable home purchase price 30 Years 25 Years 20 Years 15 Years Term Rate 30% 3.5 $4,74 $5.55 Exhibit 7-7 Mortgage Payment Factors (principal and Interest factors per $1,000 of loan amount) $6.91 54.22 4.49 5.80 5.01 5.28 7.15 7.40 40 4.77 6.06 45 5.07 5.56 7.65 5.0 5.37 633 6.60 6.88 5.85 6.14 7.91 5.5 8.12 5.68 6.00 60 6.44 7.16 8.44 65 6.32 6.75 7:46 871 70 6.65 7.07 7.75 8.99 7.5 6.99 739 9.27 8.06 8.36 8.0 734 7.72 956