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) 15-year loan at Down payment to be made (percent of purchase price)15 percent Monthly estimate for property taxes and insurance $ 255 $ 3,400 $205 6 percent Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase xhibit 7-6 Housing Affordability and Mortgage Qualification Amounts Example A Example EB tep 1: Determine your monthly gross income (annual income divided by 12) $48,00012 $48,000 12 tep 2: With a down payment of at least 5 percent, lenders use 33 percent of monthly ross 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 ayments. $ 4,000 x 0.38 $ 1,520 $ 4,000 0.33 $ 1,320 step 3: Subtract other debt payments (o.9. payments on an auto loan) he monthly costs of property taxes and homeowner's insurance and an estimate of 380 300 $ 840 -$ 7.34 300 $ 1,020 + $ 7.34 a) Affordable monthly mortgage 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 x $ 1,000 x $ 1,000 $114,441 $138,965 (b) Affordable mortgage amount .. 0.9 0.9 Step 5: Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (e.g.. 1 -0.1 with a 10 percent down payment. $127,157 $154,405 (c) Affordable home purchase price.. Ex Mor Fac inter $1,0 Term Rate 3.0% 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 30 Years 25 Years $4.74 5.01 5.28 5.56 5.85 6.14 6.44 6.67 7.06 7.39 7.72 20 Years $5.55 5.80 6.06 6.33 6.60 6.88 7.16 7.45 7.75 8.06 8.36 15 Years $6.91 7.15 7.40 7.65 7.91 8.17 8.43 8.71 8.98 9.27 9.56 $4.22 4.49 4.77 5.07 5.37 5.68 6.00 6.32 6.65 6.99 7.34