Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Lease versus Purchase Decision Cost of Purchasing

/in /by
W11WORKSHEETWorksheet for Calculating the Maximum Monthly Mortgage Payment and Mortgage Size for Which You Can Qualify
 Method 1 Determine Your Maximum Monthly Mortgage Payment Using the 
 Ability to Pay, PITI Ratio.    
 a.Monthly income (annual income divided by 12)  
 b.Times 0.28: Percentage of PITI (Principal, interest, taxes, and insurance) to your 
 monthly gross income that lenders will lend in the form of a mortgage loan 
 (multiply line a by 0.28)x 0.28=$0 
 c.Less: Estimated monthly real estate tax and insurance payments–  
 d.Equals: Your maximum monthly mortgage payment using the 28% of PITI ratio=$0 
 To Determine the Maximum Mortgage Loan Level Using the Maximum Monthly 
 Mortgage Payments as Determined Using the PITI Ratio (line d): 
 Step 1: Monthly mortgage payment for a $10,000 mortgage with a ____ year 
 maturity and a ____% interest rate (using Table 8.1)=  
 Step 2: Maximum mortgage level = maximum monthly mortgage payment (line d) 
 divided by the monthly mortgage payment on a $10,000, ____%, ____year 
 mortgage (step 1 above) times $10,000 = (line d/step 1) x $10,000=  
  
 Method 2 Determine Your Maximum Monthly Mortgage Payment Using the 
 Ability to Pay, PITI Plus oth Fixed Monthly Payments, Ratio.    
 e.Monthly income (annual income divided by 12)  
 f.Times 0.36: Percentage of PITI + current monthly fixed payments to your 
 monthly gross income that lenders will lend in the form of a mortgage loan 
 (multiply line a by 0.36)x 0.36=$0 
 g.Less: Current nonmortgage debt payments on debt that will take over 
 10 months to pay off and other monhtly legal obligations such as child support 
 and allimony payments–  
 h.Less: Estimated monthly real estate tax and insurance payments–  
 i.Equals: Your maximum monthly mortgage payment using the 36% of PITI + other fixed 
 Monthly payments ratio (line f  – g – h)=$0 
 To Determine the Maximum Mortgage Loan Using the PITI Plus Other Fixed Monthly 
 Payments Ratio (line i): 
 Step 1: Monthly mortgage payment for a $10,000 mortgage with a ____ year 
 maturity and a ____% interest rate (using Table 8.1)=  
 Step 2: Maximum mortgage level = maximum monthly mortgage payment (line d) 
 divided by the monthly mortgage payment on a $10,000, ____%, ____year 
 mortgage (step 1 above) times $10,000 = (line i/step 1) x $10,000=  
  
 Method 3 Determine Your Maximum Mortgage Level Using the “80% of the 
 Appraised Value of the House” Rule.    
 j.Funds availble for the down payment and closing costs  
 k.Less: Closing costs–  
 l.Equals: Funds available for the down payment=$0 
 m.Times 4: Maximum mortgage level using the “80% of the appraised value of the 
 house” rule (the 20% down, line l, times 4 equals the 80% you can borrow)x 4=$0 
  
 Conclusion: Maximum Mortgage Level for Which You Will Qualify 
 (the lowest of the amounts using method 1, method 2, or method 3) =  
 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"