last question only.

question 5

Assignment 7.2 Home Affordability Name SHOW YOUR WORK You have just graduated from State University with a degree in Diesel Technology. Your new job takes you to Toledo, Ohio. You are now earning $35,000 per year Your take home pay is 70% of that pross total. You are anxious to purchase a home. You have the following monthly expenses: Food $275 Utilities $145 Phone $75 Medical $30 Insurance $130 (including auto, health, and life) Clothing $70 Student loan payment $145 VISA payment $65 MasterCard payment $48 Car payment $211 Miscellaneous $100 Total $ 1. First calculate your monthly take-home pay. Next, add up the budgeted monthly expenses shown above. How much remains for a monthly mortgage PITI payment? 2. Assume that taxes and insurance (T&I) amount to $70 per month. How much remains to pay monthly mortgage principal and interest (P&T)? 3. Using the answer to question 12 calculate the size of mortgage loan you could obtain. Assume a 30-year loan at 5% annual interest. 4. Using the answer from question #3, and assuming you have 10% of the purchase price, what is the most you could pay for a home? 5. Assuming you do not pay the mortgage off early, how much interest will you pay the lender over the life of the loan? 179