Question
Shakeira Duncan wants to know what affordable home purchase price she can afford. Her annual gross income is $45,000. She owes $550 per month on
Shakeira Duncan wants to know what affordable home purchase price she can afford. Her annual gross income is $45,000. She owes $550 per month on other debts and expects her property taxes and homeowner's insurance to cost $225 per month. She knows she can get an 8 percent, 30-year mortgage so her mortgage payment factor is 7.34. She expects to make a 10 percent down payment. What is Shakeia's affordable home purchase price? Do not round intermediate calculations and round your final answer to the nearest $100. (Use .38 as your factor) Show your work. (Use the Housing Affordability and Mortgage Qualification Amounts handout to guide you in solving this)
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