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. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

Monthly gross income	$ 2,950
Other debt (monthly payment)	$ 160
30-year loan at	6	percent
Down payment to be made (percent of purchase price)	15	percent
Monthly estimate for property taxes and insurance	$ 210

Affordable monthly mortgage payment
Affordable mortgage amount
Affordable home purchase

30 Years 25 Years 20 Years 15 Years Term Rate 3.0% 3.5 $4.22 $4.74 Exhibit 7-7 Mortgage Payment Factors (principal and interest factors per $1,000 of loan amount) $6.91 4.49 5.01 $5.55 5.80 6.06 7.15 4.0 4.77 5.28 7.40 4.5 5.07 5.56 6.33 7.65 5.0 5.37 5.85 6.60 7.91 5.5 5.68 6.14 6.88 8.17 6.0 6.00 6.44 7.16 8.44 6.5 6.32 6.75 7.46 8.71 7.0 6.65 7.07 7.75 8.99 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56 Exhibit 7-6 Housing Affordability and Mortgage Qualification Amount Example A Example B Step 1: Determine your monthly gross income (annual income divided by 12). $48,000 = 12 $48,000 = 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. $ 4,000 X 0.38 $ 1,520 $ 4.000 X 0.33 $ 1,320 Step 3: Subtract other debt payments (e.g., payments on an auto loan) and an estimate of the monthly costs of property taxes and homeowner's insurance. -380 -300 -300 (a) Affordable monthly mortgage payment 840 $ 1.020 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 - $ 5.37 x $ 1,000 = $ 5.37 x $1,000 (b) Affordable mortgage amount. $156,425 $189.944 +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). (c) Affordable home purchase price $173,805 $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 mortgage. 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