Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer toExhibit 9-8andExhibit 9-9)(Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.)

Monthly gross income$4,200Down payment to be made (percent of purchase price)10PercentOther debt (monthly payment)$250Monthly estimate for property taxes and insurance$29030-year loan6.0Percent

Exhibit 9-8 Housing affordability and mortgage qualification amounts Example A Example B Step 1: Determine your monthly gross income (annual $48,000 + 12 $48,000 = 12 income divided by 12). Step 2: With a down payment of at least 5 percent, lenders $ 4,000 $ 4,000 use 33 percent of monthly gross income as a x 38 x .33 guideline for PITI (principal, interest, taxes, and insurance) and 38 percent of monthly gross income $ 1,520 $ 1,320 as a guideline for PITI plus other debt payments. Step 3: Subtract other debt payments (e.g., payments on an -380 auto loan) and an estimate of the monthly costs of -300 -300 property taxes and homeowner's insurance. (a) Affordable monthly mortgage payment $ 840 $1,020 Step 4: Divide this amount by the monthly mortgage :$ 7.34 :$ 7.34 payment per $1,000 based on current mortgage * $ 1,000 * $ 1,000 rates-an 8 percent, 30-year loan, for example (see Exhibit 9-9 (@)-and multiply by $1,000. (b) Affordable mortgage amount $114,441 $138,965 Step 5: Divide your affordable mortgage amount by 1 minus : .9 : .9 the fractional portion of your down payment (e.g., 1- 1 with a 10 percent down payment). (c) Affordable home purchase price $127,157 $154,405Exhibit 9-9 Mortgage payment factors {principal and interest factors per $1.000 of loan amount) Check my work 15 Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.) 7 points Monthly gross income $4, 200 Down payment to be made (percent of purchase price) 10 Percent eBook Other debt (monthly payment) 250 Monthly estimate for property taxes and insurance 290 Hint 30-year loan 6.0 Percent Print References Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase