GETTING STARTED

2 Gross Monthly Income $4,000 $________

3 Monthly Allowable Housing Expense $1,520. $__________

And Long Term Obligations ( Line 2

multiplied By .38

**.38% of gross monthly income is usually

Allocated for principal, interest, taxes,

Insurance and monthly long -term obligations

4 Monthly Allowable Housing Expense $400. $____________)

Line 3 minus your monthly obligations -

credit cards, child support, car loan. Etc.

(Remainder is allowable principal, interest ,

taxes Insurance payment )

NOTE: Monthly Allowable

Housing Expense on line 4 should not exceed

33% Of line 2. If it does, enter the lesser

amount of the two on line 4 and continue.

5 Monthly Principal and Interest Payment $896. $_____________

Line 4 multiplied by .80

(80% is the amount of the monthly allowable

housing expense usually allocated to only

the principal and interest payment,

excluding (taxes and insurance)

6. Estimated Mortgage Amount $122,070 $_____________

Line 5 divided by 7.34 multiplied by
$1,000 (7.34 is the factor for a 8% loan

Amortized over a 30 year period) check

with Paul & Mike for a factor based on

current rates.

7. Estimated Affordable Price $152,600 $_____________

Line 6 divided by .80

(80% is the mortgage loan amount assuming

a 20 down payment , use 90% for a 10% down

payment)