Give me step by step instructions for the following question Business Decision For What Size Mortgage Can You Qualify 2 3 You are applying for a conventional mortgage from the Americana Bank Your monthly gross income is $ 3 , 5 0 0 , and the bank uses the 2 8 housing expense ratio guideline a What is the highest PITI for which you can qualify Hint Solve the housing expense ratio formula for PITI Remember, this is an application of the percentage formula, Portion Rate Base, where PITI is the portion, the expense ratio is the rate, and your monthly gross income is the base b Based on your answer from part a , if you are applying for a 3 0 year, 9 mortgage and the taxes and insurance portion of PITI is $ 1 7 5 per month, use Table 1 4 1 to calculate the size of the mortgage for which you qualify Hint Subtract TI from PITI Divide the PI by the appropriate table factor to determine the number of $ 1 , 0 0 0 s for which you qualify c Based on your answer from part b , if you are planning on a 2 0 down payment, what is the most expensive house you can afford Hint Use the percentage formula again The purchase price of the house is the base, the amount financed is the portion, and the percent financed is the rate

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Give me step by step instructions for the following question: Business Decision: For What Size Mortgage Can You Qualify? 2 3 . You are applying

Give me step by step instructions for the following question:

Business Decision: For What Size Mortgage Can You Qualify?

23 .

You are applying for a conventional mortgage from the Americana Bank. Your monthly gross income is $

3, 500,

and the bank uses the

28 %

housing expense ratio guideline.

.

What is the highest PITI for which you can qualify? Hint: Solve the housing expense ratio formula for PITI. Remember, this is an application of the percentage formula, Portion

=

Rate

Base, where PITI is the portion, the expense ratio is the rate, and your monthly gross income is the base.

.

Based on your answer from part a

,

if you are applying for a

30 -

year,

9 %

mortgage and the taxes and insurance portion of PITI is $

175

per month, use Table

14 - 1

to calculate the size of the mortgage for which you qualify. Hint: Subtract TI from PITI. Divide the PI by the appropriate table factor to determine the number of $

1, 000

s for which you qualify.

.

Based on your answer from part b

,

if you are planning on a

20 %

down payment, what is the most expensive house you can afford? Hint: Use the percentage formula again. The purchase price of the house is the base, the amount financed is the portion, and the percent financed is the rate.