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. (Round your intermediate and final answers to the nearest whole dollar.)
Monthly gross income $ 3,200
Other debt (monthly payment) $ 185
30-year loan at 7 percent
Down payment to be made (percent of purchase price) 20 percent
Monthly estimate for property taxes and insurance $ 235
1. Affordable monthly mortgage payment $_____
2. Affordable mortgage amount $_____
3. Affordable home purchase $_____