Activity
Suppose you wanted to buy a house and you wanted to determine what you can afford to pay for the house. Use the following values and the
home affordability calculator to determine what price you can afford to pay.
• gross annual income: $200,000
• down payment amount: $20,000
• debt-to-Income: 36%
• monthly debt:$3,500
• mortgage rate: 696
• loan term: 360 months
• annual property taxes: $4,750
• annual homeowners Insurance: $522
• no private mortgage Insurance (PMI)
Now fill in the results in this table
house price
loan amount
monthly principle and
interest payment
monthly property taxes and
homeowners insurance
payment