Duane Miller wants to know what price home he can afford. His annual gross income is $54,000. He has no other debt expenses and expects property taxes and insurance to cost $400 per month. He knows he can get a 11.00%, 15 year mortgage so his mortgage payment factor is 11.37. He expects to make a 15% down payment. What is Duane's affordable home purchase price? (Round your answer to the nearest whole dollar.)

Multiple Choice

• $91,681
• $112,267
• $133,139
• $162,613
• $61,403

2 Michelle Duncan wants to know what price home she can afford. Her annual gross income is $48,000. She owes $700 per month on other debts and expects her property taxes and homeowners insurance to cost $200 per month. She knows she can get an 9.00%, 30-year mortgage so her mortgage payment factor is 8.05. She expects to make a 30% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)

Multiple Choice

• $110,027
• $820
• $47,100
• $820
• $107,807

3 If closing costs of $2,900 are associated with the refinance of a mortgage that would reduce the monthly payment from $1,060 to $975 refinance, it would take approximately ____ months to cover these costs. (Round your answer to the nearest full month.)

Multiple Choice

• 33
• 44
• 35
• 31
• 39

4 Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $306 two years ago and has an expected life of six years. A comparable microwave costs $419 today. What amount will the insurance company pay?

Multiple Choice

• $102
• $153
• $419
• $362
• $204

5 Your home insurance policy has a $190 deductible. If a small fire causes $780 damage to your home, what amount of the claim would the insurance company pay?

Multiple Choice

• $190
• $590
• $485
• $780
• not able to determine from this information