Financial Planning Exercise 7 Calculating monthly mortgage payments Find the monthly mortgage payments on the following mortgage loans using either your calculator or the Excel spreadsheet. a. $150,000 at 5.5 percent for 25 years. Do not round intermediate calculations. Round the answer to the nearest cent, $ b. $105,000 at 5.5 percent for 20 years. Do not round intermediate calculations, Round the answer to the nearest cent. $ C. $95,000 at 5 percent for 15 years. Do not round Intermediate calculations. Round the answer to the nearest cent. Financial Planning Exercise 8 Home affordability analysis Use Worksheet 5.3. Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first home. They have a combined annual income of $67,500 and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insurance and property taxes will be $300 per month. They expect the mortgage lender to use a 20 percent of monthly gross income) mortgage payment affordability ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 15 percent down payment. Based on this information, use the home affordability analysis form in Worksheet 5,3 to determine the highest-priced home the Harrisons can afford. Assume that closing costs are one-half of the down payment. Round the answer to the nearest dollar