Exhibit 9-8

Exhibit 9-9

21 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.) 10 points Skipped Mortgage Costs $ 6,000 10 $ 318 390 5.0 Monthly gross income Down payment to be made (percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan Pel eBook Per Print References Affordable Amount Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase price Exhibit 9-8 Housing affordability and mortgage qualification amounts Example A Example B Stept Determine your monthly $48,000 - 12$48,000 - 12 gross income (annual income divided by 12) Step 2: With a down payment of at $4,000 $4,000 least 5 percent, lenders use * 38 x 33 33 percent of monthly gross $1,520 $1,320 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. Step 3. Subtract other debt -380 payments (e-9. payments on -300 -300 an auto loan) and an estimate of the monthly costs of property taxes and homeowner's insurance (c) Affordable monthly mortgage $ 840 $1020 payment -$7.34 -$7.34 * $1.000 51.000 Step 4: Divide this amount by the monthly mortgage payment per $1.000 based on current mortgage rates-on 8 percent, 30-year loan, for exemple (see Exhibit 9-96) -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. 1-1 with a 10 percent down payment (c) Affordable home purchase price 5114.441 $138.965 9 5127157 $154405 30 Years 20 Yoars Torm Rato 25 Yoors 15 Yours 3.0% $4.22 $4.74 $5.55 $6.91 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 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 8.43 6.5 6.32 6.67 7.45 8.71 7.0 6.65 7.06 7.75 8.98 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56 8.5 7.69 8.05 8.68 9.85