Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6, Exhibit 7-7. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Monthly gross income $ 2,950 Other debt (monthly payment) $ 160 30-year loan at 6 percent Down payment to be made (percent of purchase price) 15 percent Monthly estimate for property taxes and insurance $ 210
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6, Exhibit 7-7. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Monthly gross income $ 2,950 Other debt (monthly payment) $ 160 30-year loan at 6 percent Down payment to be made (percent of purchase price) 15 percent Monthly estimate for property taxes and insurance $ 210
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6, Exhibit 7-7. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)
| Monthly gross income | $ | 2,950 | |
| Other debt (monthly payment) | $ | 160 | |
| 30-year loan at | 6 | percent | |
| Down payment to be made (percent of purchase price) | 15 | percent | |
| Monthly estimate for property taxes and insurance | $ | 210 | |
Expert Solution
Step 1 Calculation of Affordable Monthly Mortgage Paymen
Monthly Mortgage Payment = (Monthly Gross Income * 0.38) - Other Debt - Monthly Estimate of Property taxes and insurance
Monthly Mortgage Payment = (2950 * 0.38) - 160 - 210
Monthly Mortgage Payment = 751
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