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Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for

Exhibit 7-6 Housing Affordability and Mortgage Qualification Amount Example A Example B Step 1: Determine your monthly gross

Exhibit 7-7 Mortgage Payment Factors (principal and interest factors per $1,000 of loan amount) Term Rate 30 Years 25 Years 2

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Answer #1

Monthly gross income   3490

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38% of Monthly gross income  
(3490*0.38)=   1326.2
  
less: Other debt payments   -250
less: property taxes and insurance   -180
  
Affordable monthly mortgage payment=   896.2
  
15 year loan at 6% rate has 8.44 factor  
So Affordable mortgage amount =Affordable monthly payment/Table factor*1000  
896.20/8.44*1000  
=106184.8341  
  
Affordable home Purchase= Affordable mortgage amount/(1-down payment %)  
106184.8341/(1-15%)  
=106184.8341/0.85  
=124923.3343  
  
Affordable monthly mortgage payment=   $896.20
Affordable mortgage amount =   106184.8341
Affordable home Purchase =   $124,923.33
  

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