Reference no: EM132786306

Questions -

Q1. Michelle Duncan wants to know what price home she can afford. Her annual gross income is $48,000. She owes $700 per month on other debts and expects her property taxes and homeowners insurance to cost $200 per month. She knows she can get an 9.00%, 30-year mortgage so her mortgage payment factor is 8.05. She expects to make a 30% down payment. What is Michelle's affordable home purchase price?

$110,027

$820

$47,100

$820

$107,807

Q2. Duane Miller wants to know what price home he can afford. His annual gross income is $54,000. He has no other debt expenses and expects property taxes and insurance to cost $400 per month. He knows he can get a 11.00%, 15 year mortgage so his mortgage payment factor is 11.37. He expects to make a 15% down payment. What is Duane's affordable home purchase price? (Round your answer to the nearest whole dollar.)

$91,681

$112,267

$133,139

$162,613

$61,403