They have a combined income of $$80,000$ per year, which means that their combined post$-$tax $($gross$)$ take$-$home pay is approximately $$4800$ per month. Their car is paid off and they do not currently have any other fixed monthly payments to consider. Determine $28\%$ of the Smiths adjusted monthly income. Remember, this is the maximum they can afford.

$5)$ Based on calculations provided to them, they expect to pay approximately: $$92$ per month on homeowners$$ insurance, $$355$ per month in property taxes, and $$100$ per month in PMI. $($PMI or Private Mortgage Assistance is often required on conventional mortgages when the down payment is less than $20\%.$ It is affected by the amount of the loan and credit score.$)$ Using this information and the answers to numbers $3$ on the previous page and $4$ above, do the Smiths qualify for the $30-$year fixed mortgage? Yes or no$?$ Show calculations and$/$or explain in words to support your answer.

They decide to take the $30-$year mortgage.

a$.$ Determine the total cost of the house.

b$.$ How much of the total cost is interest?

$7)$ The Smiths have been researching strategies for a monthly budget. They have decided to use the $50/30/20$ simple budget framework they found on nerdwallet.com. $50\%$ of their budget is supposed to go to needs, $30\%$ is for wants, and $20\%$ is for a combination of savings and debt repayment. Remember, their post$-$tax monthly income is $$4800.$

a$.$ Needs: What is $50\%$ of their monthly income?

b$.$ Wants: What is $30\%$ of their monthly income?

c$.$ Savings$/$Debt Repayment: What is $20\%$ of their monthly income?