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 7.7 (Round your intermediate and final answers to the nearest whole dollar.) Monthly gross income Other debt monthly payment) 25-year loan at Down payment to be made percent of purchase price) Monthly estimate for property taxes and insurance $245 7 percent 20 perdent 190 Alfordable monthly mortgage payment Affordable mortgage amount Affordable home purchase Exhibit 7-6 Housing Affordability and Mortgage Qualification Amount Bomple A $18,000. 12 $18,000+ 12 $ 4,000 X0.38 $ 1,520 54,000 x0,33 51,320 -380 -300 -300 Step 1: Determine your monthly gross income (annual income divided by 12) Step 2: With down payment of at least 5 percent, lenders se 33 percent of monthly gross income as a guideline for PT (principal, Interest, taxes, and insurance) and 38 percent of monthly grass income as a guideline for PITI plus other debt payments Step 3: Subtract other debt payments (0.9. 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 (b) Affordable mortgage amount Step 5: Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (eg.1 -0.1 with a 10 percent down payment). (c) Affordable home purchase price $ 840 $1,020 + $ 5.37 X$ 1,000 +$ 537 x $1,000 $156,425 $189,944 +0.9 -0.9 3173,805 $211,049 NOTE The two ratios lending institutions use step 2) and other loan requirements may vary based on a variety of factors, including the type of mortgages 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% $4,22 $4.74 $5.55 $6.91 Exhibit 7-7 Mortgage Payment Factors (principal and interest factors per $1,000 of loan amount) 3.5 4.49 5.01 5.80 7:15 4.0 4.77 5.28 6.06 7.40 4.5 5.07 5.56 6.33 7.65 50 5.37 5.85 6.60 791 5.5 5.68 6.14 6.88 8.17 6.0 6.00 6.44 7.16 8.44 65 6.32 6.75 7.46 8.71 7.0 6.65 7.07 7.75 8.99 75 6.99 . B 7,39 8.06 9.27 8.0 7.34 7.72 8.36 9.56