Given your financial condition above and the desire for a 30-year fixed-rate mortgage that requires a 20% down payment, use the 28% front-end ratio to identify the amount of the monthly payment necessary to cover the loan's principal, interest, taxes, and homeowners' insurance, as well as the gross annual income required to qualify for the loan. A table that may be used to facilitate this analysis follows. Remember that for each home price-interest rate combination, the upper number reflects the monthly payment and the lower number indicates the borrower's required annual income. Price of home / Interest rate $120,000 $150,000 $180,000 $210,000 3.0% 555 693 832 971 $240,000 1,109 47,500 23,800 29,700 35,700 41,600 4.0% 608 760 912 1,064 1,217 26,100 32,600 39,100 45,600 52,100 5.0% 665 832 998 1,164 1,331 28,500 35,700 42,800 49,900 6.0% 725 907 1,269 1,088 46,600 57,000 1,451 62,200 31,100 38,900 54,400 7.0% 789 986 1,183 1,380 1,577 33,800 42,300 50,700 59,200 67,600 and Given your financial situation and the table above, you should be able to qualify for a home that costs between If purchased, your loan would require monthly payments of If you select a mortgage loan offer that requires a down payment of less than 20%, the lender will most likely require you to: O Purchase a home warranty policy O Make a balloon payment O Find a cosigner for the loan O Purchase private mortgage insurance The estimated monthly payments for a single-family dwelling typically include the transaction's loan principal and interest, property taxes, and homeowner's insurance (PITI) O loan principal and interest, property taxes, home insurance, and realtor fees (PITIR) O loan principal and interest and property taxes (PIT) O loan principal and interest only (PI) In contrast, the estimated monthly payments for a condominium typically include the transaction's O None of these O Loan principal and interest, property taxes, home insurance, and realtor fees (PITIR) plus any homeowners' association fees The same elements as that required in the purchase of a single-dwelling house O Loan principal and interest plus any homeowners' association fees Given your financial condition above and the desire for a 30-year fixed-rate mortgage that requires a 20% down payment, use the 28% front-end ratio to identify the amount of the monthly payment necessary to cover the loan's principal, interest, taxes, and homeowners' insurance, as well as the gross annual income required to qualify for the loan. A table that may be used to facilitate this analysis follows. Remember that for each home price-interest rate combination, the upper number reflects the monthly payment and the lower number indicates the borrower's required annual income. Price of home / Interest rate $120,000 $150,000 $180,000 $210,000 3.0% 555 693 832 971 $240,000 1,109 47,500 23,800 29,700 35,700 41,600 4.0% 608 760 912 1,064 1,217 26,100 32,600 39,100 45,600 52,100 5.0% 665 832 998 1,164 1,331 28,500 35,700 42,800 49,900 6.0% 725 907 1,269 1,088 46,600 57,000 1,451 62,200 31,100 38,900 54,400 7.0% 789 986 1,183 1,380 1,577 33,800 42,300 50,700 59,200 67,600 and Given your financial situation and the table above, you should be able to qualify for a home that costs between If purchased, your loan would require monthly payments of If you select a mortgage loan offer that requires a down payment of less than 20%, the lender will most likely require you to: O Purchase a home warranty policy O Make a balloon payment O Find a cosigner for the loan O Purchase private mortgage insurance The estimated monthly payments for a single-family dwelling typically include the transaction's loan principal and interest, property taxes, and homeowner's insurance (PITI) O loan principal and interest, property taxes, home insurance, and realtor fees (PITIR) O loan principal and interest and property taxes (PIT) O loan principal and interest only (PI) In contrast, the estimated monthly payments for a condominium typically include the transaction's O None of these O Loan principal and interest, property taxes, home insurance, and realtor fees (PITIR) plus any homeowners' association fees The same elements as that required in the purchase of a single-dwelling house O Loan principal and interest plus any homeowners' association fees