Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a house. Lender guidelines suggest that the allowable monthly housing expenditure should be no more than 28% of monthly gross income. From this, you must subtract total nonmortgage housing expenses, which would include insurance and property taxes and any other additional expenses. This defines the affordable monthly mortgage payment. In addition, guidelines also suggest that total affordable monthly debt payments, including housing expenses, should not exceed 36% of gross monthly income. This is calculated by subtracting total nonmortgage housing expenses and any other installment debt, such as car loans, student loans, credit card debt, and so on, from 36% of total monthly gross income. The smaller of the affordable monthly mortgage payment and the total affordable monthly debt payments is the affordable monthly mortgage. To calculate the maximum that can be borrowed, find the monthly payment per $1,000 mortgage based on the current interest rate and duration of the loan. Divide the affordable monthly mortgage amount by this monthly payment to find the affordable mortgage. Assuming a 20% down payment, the maximum price of a house would be the affordable mortgage divided by 0.8. Use the following data to test your model: Total monthly gross income = $6,100 Nonmortgage housing expenses = $390 Monthly installment debt = $600 Monthly payment per $1,000 mortgage = $6.75 10 Down Payment 20% 11 What one can afford to spend on a house =B9/(100%-B10) Complete the following spreadsheet model. (Type integers or decimals rounded to two decimal places as needed.) A 1 Total Monthly Gross Income 2 Allowable Monthly Housing Expenditure 3 Total Non-Mortgage Housing Expenses 4 Affordable Monthly Mortgage Payment 5 Monthly Installment Debt 6 Total Affordable Monthly Debt Payments 7 Affordable Monthly Mortgage 8 Monthly Payment per $1000 mortgage 9 Maximum that can be borrowed 10 Down Payment 11 What one can afford to spend on a house B $6,100.00 $1708 $390.00 $1318 $600.00 $1206 $ $6.75 $ 20% 277 $

Suppose you earn a gross income of $2,920.00 per month and apply for a mortgage with a monthly PITI of $908.12. You have other financial obligations totaling $169.36 per month.   If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would you qualify for?     Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36%   A. FHA only B. Conventional only     C. FHA and Conventional D. None of the above

That calculated monthly expense should include all housing costs (such as insurance, property taxes, etc), let’s estimate this means they would have around $950 a month for their mortgage payment and they have poor credit so qualify for a loan with an APR of 5.481%.  What size 30 year home mortgage loan could they pay off with a monthly payment of $950?

Answer the following question using a spreadsheet and the material in the appendix. You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year to a lender for the next 30 years. If the interest rate is 7% how much can you borrow today based on your ability to pay? What about if the interest rate is 3%? Maximum mortgage at 7%: $     Maximum mortgage at 3%: $

Michelle Duncan wants to know what price home she can afford. Her annual gross income is $49,800. She owes $840 per month on other debts and expects her property taxes and homeowners insurance to cost $310 per month. She knows she can get an 9.50%, 30-year mortgage so her mortgage payment factor is 8.41. She expects to make a 25% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)

A family needs to take out a 15​-year home mortgage loan of $170,000 through a local bank. Annual interest rates for 15​-year mortgages at the bank are 3.5% compounded monthly.   ​(a) Compute the​ family's monthly mortgage payment under this loan. ​(b) How much interest will the family pay over the life of the​ loan?

Based on the following data, calculate the items requested: Buying Costs Annual mortgage payments Property taxes Down payment/closing costs Growth in equity Insurance/maintenance Estimated annual appreciation Rental Costs Annual rent Insurance Security deposit $ 8,230 $ 230 $ 1,075 Assume an after-tax savings interest rate of 7 percent and a tax rate of 32 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. Rental cost Buying cost a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) $ 10,450 (10,000 is interest) $ 2,120 $ 5,150 $ 450 $1,900 $ 2,550 b. Would you recommend buying or renting? O Renting O Buying

Suppose you earn a gross income of $2,710.00 per month and apply for a mortgage with a monthly PITI of $501.35. You have other financial obligations totaling $428.18 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would you qualify for? Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% O FHA only O Conventional only O FHA and Conventional O None of the above

Instructions Answer the journal prompts according to the scenario below: Joe-Bob wants to buy a car and will need to take out a loan in order to make the purchase. His current monthly income is $3,500 per month. His mortgage payment is $900 per month, and his student loan payment is $350 per month. Note: You do not need to take taxes into consideration for this journal. According to the affordability formulas given, can he afford to take out another loan? • When should he follow the affordability formulas? In what cases should he not? • How could taking out the car loan impact his other priorities?

13) Some financial advisors recommend that your monthly mortgage payment be no higher than 28% of your monthly net income. What is 28% of your monthly net income, as determined in question twelve? This is the estimated amount you can afford per month for a mortgage. 4,518*0.28 $1,265 28% of my monthly net income is $1,265. 14) We can calculate how much of a house you can afford using the loan formula. In question thirteen, you determined the monthly mortgage payment you can afford. Using this value for the regular monthly payment, calculate the present value (P), assuming you receive a 30-year mortgage (loan) with an annual interest rate of 6.328% with monthly compounding. (Note: This rate is realistic for a mortgage initiated in January 2024.) I need to use Loan formula to find the present value (P). please help me