Monthly Gross Payment = 3050
Now as per principal of PITI we will take 38% as monthly payment
=3050*0.38 = 1159
Less : Monthly estimate of property taxes insurance - 220
Less: other debts - 170
Affordable monthly mortgage payment = 769
now, as per exhibit, interest factor for 25 years for 7% is 7.06,
Affordable mortgage amount = Affordable monthly mortgage payment/ 7.06*1000
hence, Affordable mortgage amount = 769/7.06*1000 = 108923.5127
Affordable mortgage amount =108924
Since, 20% is paid as down payment, remaining is 80% or 0.80
Affordable home purchase = affordable mortgage amount/ remaining % of amount
Affordable home purchase = 108924/0.80 = 136155
hope the answer is sufficient, pls let m know if any additional help required
ms Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase...
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