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Five years have passed and Jamie Lee, 3 4 , is considering taking the plunge - - not only is she engaged to be married,
Five years have passed and Jamie Lee, is considering taking the plungenot only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lees cupcake caf is a success! It has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of cupcakes. One such customer, who stopped by on a whim in the cafs first week of business, is Ross. After a whirlwind courtship, Ross, a selfemployed web designer, proposed, and Jamie Lee agreed to be his wife. The bungalow that Jamie Lee has been renting for the past five years is too small for the soontobe newlyweds, so Jamie Lee and Ross have purchased a brand new threebedroom, bath home in a quiet neighborhood for $ Use the provided information and the table below to calculate the affordable mortgage amount that would be suggested by a lending institution based on Jamie Lee and Rosss income. You will need to make note of the purchase price above of their home for future questions. Use the following for Jamie Lee and Ross's calculations: down payment $ per month for estimated combined property taxes and insurance interest rate for years Refer to Exhibit for current mortgage ratesCurrent Financial Situation Step Determine your monthly gross income annual gross income Step With a down payment of at least lenders use of monthly gross income as a guideline for PITI principal interest, taxes, and insurance and of monthly gross income as a guideline for PITI plus other debt payments. Enter or depending upon whether other debt payments are present. Step Subtract other debt payments such as payments on an auto loan if applicable. Subtract estimated monthly costs of property taxes and homeowner's insurance. Affordable monthly mortgage payment
Five years have passed and Jamie Lee, is considering taking the plungenot only is she engaged to be married, but she is also deciding on whether to purchase a new home.
Jamie Lees cupcake caf is a success! It has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of cupcakes. One such customer, who stopped by on a whim in the cafs first week of business, is Ross. After a whirlwind courtship, Ross, a selfemployed web designer, proposed, and Jamie Lee agreed to be his wife.
The bungalow that Jamie Lee has been renting for the past five years is too small for the soontobe newlyweds, so Jamie Lee and Ross have purchased a brand new threebedroom, bath home in a quiet neighborhood for $
Use the provided information and the table below to calculate the affordable mortgage amount that would be suggested by a lending institution based on Jamie Lee and Rosss income. You will need to make note of the purchase price above of their home for future questions.
Use the following for Jamie Lee and Ross's calculations:
down payment
$ per month for estimated combined property taxes and insurance
interest rate for years
Refer to Exhibit for current mortgage ratesCurrent Financial Situation
Step
Determine your monthly gross income annual gross income
Step
With a down payment of at least lenders use of monthly gross
income as a guideline for PITI principal interest, taxes, and insurance
and of monthly gross income as a guideline for PITI plus other debt
payments. Enter or depending upon whether other debt
payments are present.
Step
Subtract other debt payments such as payments on an auto loan if
applicable.
Subtract estimated monthly costs of property taxes and homeowner's
insurance.
Affordable monthly mortgage payment
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