Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's cupcake caf is a successIt 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 cafe's first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed 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 soon-to-be newlyweds, so Jamie Lee and Ross have purchased a brand new three-bedroom, 2 bath home in a quiet neighborhood for $273,000. 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 Ross's 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: 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7-7 for current mortgage rates Current Financial Situation Assets Jamie Lee and Ross combined Income Checking account $45.000 Savings account Emergency fund savings account $4,300 Gross income amie Lee $55,200 Net Income after taxes amie Lee $19.00 Gross income Ross $24.000 et income here oss $12.000 Monthly Expenses Combined $20.000 Uits $3,500 $70,000 350.000 Car Jamie Lee Car Ross) Liabilities Combined): Studenten belance Credit card balance 50 Gas Maintenance $0 Credit card payment $8.000 Cartoon payment Car loans Entertainment Step 1 Determine your monthly gross income (annual gross income / 12) Step 2 with a down payment of at least 5% lenders use 33% of monthly gross Income as a guideline for PITI (principal, Interest, taxes, and insurance) and 38% of monthly gross income as a guideline for PM plus other debt payments. Enter 33% or 38% depending upon whether other debt payments are present. Step 3 Subtract other debt payments (such as payments on an auto loan), ir applicable. Subtract estimated monthly costs of property taxes and homeowner's insurance Affordable monthly mortgage payment Step 4 Divide this amount by the monthly mortgage payment per $1,000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 30-year loan, the number would be $8.78). Multiply by $1,000 Affordable mortgage amount Step 5 . Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (for example, 0.9 for a 10 percent down payment). Affordable home purchase price Term Rate 30 Years 25 Years 20 Years 16 Years 3.0% $422 $6.91 $5.55 5.80 3.5 149 4.77 $4.74 5.01 5.28 5.56 5.85 4.0 4.5 6.06 7.15 7.40 7.65 7.91 5.07 5.37 5.5 5.68 6.14 6.33 6.60 6.88 7.16 7.45 8.17 6.0 6.44 8.43 6.67 8.71 7.0 6.00 6.32 6.65 6.99 7.34 7.06 8.98 7.39 7.75 8.06 8.36 9.27 7.72 9.56 ANAS Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's 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 caf's first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed 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 soon-to-be newlyweds, so Jamie Lee and Ross have purchased a brand new three-bedroom, 2 bath home in a quiet neighborhood for $273.000. 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 Ross's income. You will need to make note of the purchase price (above) of their home for future questions. - Refer to Exhibit 7-7 for current mortgage rates Use the following for Jamie Lee and Ross's calculations: 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7.7 for current mortgage rates Current Financial Situation Assets (Jamie Lee and Ross combined): Checking account $4,300 Gross Income (Jamie Lee) Savings account $55,200 Net Income after taxes (Jamie Lee) Emergency fund savings accoun $19,100 Gross income (Ross) $45.000 $31,500 $70.000 IRA balance $24,000 Net income after taxes (Ross) $12,000 Monthly Expenses (Combined): Car (Jamie Lee) 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7-7 for current mortgage rates Current Financial Situation Assets (Jamie Lee and Ross combined): Checking account $4,300 Gross income (Jamie Lee) $45,000 Savings account $55,200 Net Income after taxes (Jamie Lee) Emergency fund savings account $31,500 $70,000 $19,100 Gross Income (Ross) $24,000 Net Income after taxes (Ross) IRA balance $59.000 Car Camle Lee) $12,000 Monthly Expenses (Combined: Car (Ross) $20,000 Utilities $160 Food Llabilities (Combined): Student loan balance $0 Gas/Maintenance Credit card balance so Credit card payment Car loans $8,000 car loan payment Determine your monthly gross income (annual gross income/12) Step 2 With a down payment of at least 5%, lenders use 33% of monthly gross Income as a guideline for PITI (principal, Interest, taxes, and insurance) and 38% of monthly gross income as a guideline for PT plus other debt payments. Enter 33% or 38% depending upon whether other debt payments are present 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 Divide this amount by the monthly mortgage payment per $1,000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 10%, 30-year loan, the number would be $8.78). Multiply by $1,000 Affordable mortgage amount Step 5 Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (for example, 0.9 for a 10 percent down payment). Affordable home purchase price Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's cupcake caf is a successIt 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 cafe's first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed 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 soon-to-be newlyweds, so Jamie Lee and Ross have purchased a brand new three-bedroom, 2 bath home in a quiet neighborhood for $273,000. 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 Ross's 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: 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7-7 for current mortgage rates Current Financial Situation Assets Jamie Lee and Ross combined Income Checking account $45.000 Savings account Emergency fund savings account $4,300 Gross income amie Lee $55,200 Net Income after taxes amie Lee $19.00 Gross income Ross $24.000 et income here oss $12.000 Monthly Expenses Combined $20.000 Uits $3,500 $70,000 350.000 Car Jamie Lee Car Ross) Liabilities Combined): Studenten belance Credit card balance 50 Gas Maintenance $0 Credit card payment $8.000 Cartoon payment Car loans Entertainment Step 1 Determine your monthly gross income (annual gross income / 12) Step 2 with a down payment of at least 5% lenders use 33% of monthly gross Income as a guideline for PITI (principal, Interest, taxes, and insurance) and 38% of monthly gross income as a guideline for PM plus other debt payments. Enter 33% or 38% depending upon whether other debt payments are present. Step 3 Subtract other debt payments (such as payments on an auto loan), ir applicable. Subtract estimated monthly costs of property taxes and homeowner's insurance Affordable monthly mortgage payment Step 4 Divide this amount by the monthly mortgage payment per $1,000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 30-year loan, the number would be $8.78). Multiply by $1,000 Affordable mortgage amount Step 5 . Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (for example, 0.9 for a 10 percent down payment). Affordable home purchase price Term Rate 30 Years 25 Years 20 Years 16 Years 3.0% $422 $6.91 $5.55 5.80 3.5 149 4.77 $4.74 5.01 5.28 5.56 5.85 4.0 4.5 6.06 7.15 7.40 7.65 7.91 5.07 5.37 5.5 5.68 6.14 6.33 6.60 6.88 7.16 7.45 8.17 6.0 6.44 8.43 6.67 8.71 7.0 6.00 6.32 6.65 6.99 7.34 7.06 8.98 7.39 7.75 8.06 8.36 9.27 7.72 9.56 ANAS Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's 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 caf's first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed 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 soon-to-be newlyweds, so Jamie Lee and Ross have purchased a brand new three-bedroom, 2 bath home in a quiet neighborhood for $273.000. 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 Ross's income. You will need to make note of the purchase price (above) of their home for future questions. - Refer to Exhibit 7-7 for current mortgage rates Use the following for Jamie Lee and Ross's calculations: 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7.7 for current mortgage rates Current Financial Situation Assets (Jamie Lee and Ross combined): Checking account $4,300 Gross Income (Jamie Lee) Savings account $55,200 Net Income after taxes (Jamie Lee) Emergency fund savings accoun $19,100 Gross income (Ross) $45.000 $31,500 $70.000 IRA balance $24,000 Net income after taxes (Ross) $12,000 Monthly Expenses (Combined): Car (Jamie Lee) 10% down payment $500 per month for estimated combined property taxes and insurance 5% interest rate for 30 years Refer to Exhibit 7-7 for current mortgage rates Current Financial Situation Assets (Jamie Lee and Ross combined): Checking account $4,300 Gross income (Jamie Lee) $45,000 Savings account $55,200 Net Income after taxes (Jamie Lee) Emergency fund savings account $31,500 $70,000 $19,100 Gross Income (Ross) $24,000 Net Income after taxes (Ross) IRA balance $59.000 Car Camle Lee) $12,000 Monthly Expenses (Combined: Car (Ross) $20,000 Utilities $160 Food Llabilities (Combined): Student loan balance $0 Gas/Maintenance Credit card balance so Credit card payment Car loans $8,000 car loan payment Determine your monthly gross income (annual gross income/12) Step 2 With a down payment of at least 5%, lenders use 33% of monthly gross Income as a guideline for PITI (principal, Interest, taxes, and insurance) and 38% of monthly gross income as a guideline for PT plus other debt payments. Enter 33% or 38% depending upon whether other debt payments are present 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 Divide this amount by the monthly mortgage payment per $1,000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 10%, 30-year loan, the number would be $8.78). Multiply by $1,000 Affordable mortgage amount Step 5 Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (for example, 0.9 for a 10 percent down payment). Affordable home purchase price