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Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Monthly gross income: $2,750. Down

Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Monthly gross income: $2,750. Down payment to be made: 15%. Other debt (monthly amount): $160. Monthly estimate for property taxes and insurance: $210. 30 year loan at 8% interest. Refer to Exhibit 9-9 as needed.

Affordable monthly mortgage payment: $675. Affordable mortgage amount $91,962. Affordable Home purchase price $108,190.

Affordable monthly mortgage payment: $751. Affordable mortgage amount $102,316. Affordable Home purchase price $120,372.

Affordable monthly mortgage payment: $751. Affordable mortgage amount $112,932. Affordable Home purchase price $132,862.

Affordable monthly mortgage payment: $675. Affordable mortgage amount $101,504. Affordable Home purchase price $119,416.

The first option is correct. Please explain how to solve without financial calculator.

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