Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.) Mortgage Costs $ 5,150 20 300 400 6.5 Monthly gross income Down payment to be made percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan Percent Percent Affordable Amount $ 1.257 Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase price Torm Rato 30 Years 25 YORTS 20 YOATS 15 Yours 3.0% $4.22 $4.74 $5.55 $6.91 3.5 4.49 5.01 5.80 7.15 4.0 477 5.28 6.06 7.40 4.5 5.07 5.56 6.33 7.65 5.0 5.37 5.85 6.60 7.91 5.5 5.68 6.14 6.88 8.17 6.0 6.00 6.44 716 8.43 6.5 6.32 6.67 7.45 8.71 7.0 6.65 7.06 7.75 8.98 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56 8.5 7.69 8.05 8.68 9.85 Example A Example B $48,000 -12 $48,000 - 12 $4.000 $4,000 $1520 $1,320 -380 -300 -300 Stept Determine your monthly gross income (annual income divided by 12). Step 2: With a down payment of at least 5 percent lenders use 33 percent of monthly gross Income as a guideline for PITI (principal, Interest taces, and insurance) and 38 percent of monthly gross Income as a guideline for PITI plus other debt payments. Step 3: Subtract other debt payments (eg. payments on an auto loan) and an estimate of the monthly costs of property taxes and homeowner's insurance {a) Affordoble monthly mortgope payment Step 4: Divide this amount by the monthly mortgage payment per $1,000 based on current mortgage rates 8 percent 30-year loan, for example (see Exhibit 9-918) and multiply by $1000 b) Affordoble mortgage amount Step 5: Divide your affordable mortgage amount by 1 minus the fractional portion of your down payment (e.g. 1-1 with a 10 percent down payment Affordable home purchase price $ 940 $1020 -5734 +$734 31000 $1.000 $114 441 $138.965 -9 5127557 $154 405