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 loans 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 borrowers required annual income.

Price of home /	$120,000	$150,000	$180,000	$210,000	$240,000
Interest rate
3.0%	555	693	832	971	1,109
	23,800	29,700	35,700	41,600	47,500
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	57,000
6.0%	725	907	1,088	1,269	1,451
	31,100	38,900	46,600	54,400	62,200
7.0%	789	986	1,183	1,380	1,577
	33,800	42,300	50,700	59,200	67,600

Given your financial situation and the table above, you should be able to qualify for a home that costs between $ and $ . If purchased, your loan would require monthly payments of $ .