# plz help - Calculate the Monthly Mortgage Payment

by Lisa
(MD)

Budgeting

• Analyze a typical budget

1. Calculate expenses

2. A mortgage payment

3. How interest and financing affect your budget.

(Show all work and identify the each answer with words.)

1. Add the numerical values for the first three letters of your last name, based on each letters position in the alphabet. For example, D is 4, L is 12, and Z is 26. Add the three place values together. For example, Wallace would yield WAL, which is 23+1+12 = 36.

2. Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.

3. Please use the following monthly expenses: Car payment = \$283.15, Car insurance = \$72, Utilities (includes water and power) = \$242.77, Internet = \$32, and Cell Phone = \$79.95.

4. You also have a yearly educational bill of \$7980 which includes textbooks and classes.

6. What percent of your monthly income is the car payment?

7. Subtract the sum of your monthly expenses. Use this value to calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.

8. Use the plan at the bottom of page 454, “Mathematics in Our World Revisited,” to calculate the monthly mortgage payment established by your monthly income.

9. Assume you can afford a down payment equal to 25% of your yearly income. What is the total purchase price can you afford for a home? Would this amount allow you to purchase a home in the area where you live?

The first three letters of my last name is WHI

### Comments for plz help - Calculate the Monthly Mortgage Payment

 Jun 30, 2011 Calculate the Monthly Mortgage Payment by: Staff ------------------------------------------------------- Part II Monthly expenses: Car payment = \$283.15 per month Car insurance = \$72 per month Utilities (includes water and power) = \$242.77 per month Internet = \$32 per month Cell Phone = \$79.95 per month Yearly educational bill (includes textbooks and classes): \$7980 \$7980/12 = \$665 per month Calculate your monthly income. (Yearly income)/(12 months) = \$60,000/(12 months) = \$5,000 per month What percent of your monthly income is the car payment? [(Monthly car payment)/(Monthly income)] * 100 = % car payment (\$283.15/\$5,000)*100 = 5.663% The monthly car payment is 5.663% of the monthly income Subtract the sum of your monthly expenses. \$5,000 per month, monthly income -\$283.15 per month, Car payment -\$72 per month, Car insurance -\$242.77 per month, Utilities (includes water and power) -\$32 per month, Internet -\$79.95 per month, Cell Phone -------------------------------------- \$4,290.13 per month (monthly income after monthly expenses, without educational expenses) If educational expenses are included: \$4,290.13 per month -\$665 per month, educational expenses -------------------------------------- \$3,625.13 per month (monthly income after monthly expenses, including educational expenses) --------- Calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage. [(Monthly income after payments)/(Monthly income)] * 100 = % available Without including educational expenses (\$4,290.13 /\$5,000)*100 = 85.8026% Available income is 85.8026% of the monthly income. Including educational expenses (\$3,625.13 /\$5,000)*100 = 72.5026% Available income is 72.5026% of the monthly income. Assume you can afford a down payment equal to 25% of your yearly income. \$60,000 * .25 = \$15,000 down payment What is the total purchase price you can you afford for a home? 28% of gross monthly income = .28*\$5,000 = \$1,400 7.70x = \$1,400 X = \$1,400/7.70 = 181.818 181.818*1000 = \$181,818 \$181,818 + \$15,000 = \$196,818 Can purchase a home costing about \$196,818 Would this amount allow you to purchase a home in the area where you live? Maryland Yes According to zillow.com, there are many homes currently for sale in your state (for example: zip code 21000). Many, many of these homes are foreclosures, which will sell well below the market price. http://www.zillow.com/homes/21000_rb/ Thanks for writing. Staff www.solving-math-problems.com