1. Duane MIller wants to know his affordable home purchase price. His annual gross income is $62,400. He has no other debt expenses and expects property taxes and insurance to cost $400 per month. He knows he can get a 10.50%, 15-year mortgage so that his mortgage payment factor is $11.05. He expects to make a 25% down payment. What is Duane's affordable home purchase price?
$107,929
$158,793
$138,207
$209,139
$179,665
2. Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $49,800. She has $820 per month of other debt and expects her property taxes and homeowners insurance to cost $270 per month. She knows she can get a 8.50%, 30-year mortgage so that her mortgage payment factor is $7.69. She expects to make a 25% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)
$21,110
$253,316
$63,329
$84,439
$48,710