Will like if correct, thank you

Five years have passed and Jamie Lee, 34 , is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's cupcake cafe is a successt th has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of cupcakes. One such customer, who stopped by on a whim in the cafe's first week of business, is Ross. After a whirtwind courtship. Ross, a seif employed web designer, proposed, and Jamie Lee agreed to be his wife The bungalow that Jamie Lee has been renting for the past five years is too small for the soon-to-be newiyweds, so Jamie Lee and Ross have purchased a brand new three-bedroom, 21/ bath home in a quiet neighborhood for $273.000. Use the provided information and the table below to calculate the affordable mortgage amount that would be suggested by a lending institution based on Jamie Lee and Ross's income. You will need to make note of the purchase price (above) of their home for future questions. Use the following for Jarnie Lee and Ross's calculations: - 10% down payment - $500 per month for estimated combined property laxes and insurance - 5% interest rate for 30 years - Refer to Exnibit 7-7 for current mortgage rates Current Financlal Situatlon Assets (Jamie Lee and Ross combined): Checking account \$4,3ed Gross incorre (Janie Lee) 545,609 Step 1 Delermine your morthly gross income (annual gross income / 12) Step 2 With a down payment of at least 5%, lenders use 33% of monthly gross income as a guideline for PITI (principal, interest faxes, and insurance) and 38% of monthly gross income as a guideline for PITI plus other debt. payments. Enter 33% or 38% depending upon whether other debt payments are present. Step 3 Subtract other debt pyymerts (such as payments on an auto loan), if applicable. Subtract estimated monthy costs of property taxes and homeowner's insurance. Affordable monthly mortgage payment Step 4 Divide this amount by the monthly mortgage paymert per $1.000 based on the current mortgage rates (see Exhibit 7-7). For example, for a 10%. 30 -year loan, the number would be $8.76 ). Multiply by $1,000 Affordable mortgage amount Step 5 Divide your affiordable mortgage amount by 1 minus the fractional portion of your down payment (for example. 0.9 for a 10 percent down payment). Affordable home purchase price Exhibit 7-7 Mortgage Payment Factors (principal and interest factors per $1,000 of loan amount)