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A lender will grant an 8080%\% loan on a home with an appraised value of $328,400\$328,400 at 44.7575%\% annual interest for 1515 years. The monthly payment will require $7.78\$7.78 per $1,000\$1,000 of loan amount. How much verifiable monthly gross income must the borrowers earn if the lender permits them to devote 2929%\% of gross monthly income to the principal and interest payment?

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Q. A lender will grant an 8080%\% loan on a home with an appraised value of $328,400\$328,400 at 44.7575%\% annual interest for 1515 years. The monthly payment will require $7.78\$7.78 per $1,000\$1,000 of loan amount. How much verifiable monthly gross income must the borrowers earn if the lender permits them to devote 2929%\% of gross monthly income to the principal and interest payment?
  1. Calculate Loan Amount: Calculate the loan amount based on the appraised value of the home.\newlineLoan amount = 8080% of $328,400\$328,400\newlineLoan amount = 0.80×3284000.80 \times 328400\newlineLoan amount = $262,720\$262,720
  2. Determine Monthly Payment: Determine the monthly payment using the rate per $\$11,000000 of loan amount.\newlineMonthly payment per $\$11,000000 = $7.78\$7.78\newlineTotal monthly payment = ($262,720/$1,000)∗$7.78(\$262,720 / \$1,000) * \$7.78\newlineTotal monthly payment = 262.72∗7.78262.72 * 7.78\newlineTotal monthly payment = $2044.58\$2044.58
  3. Calculate Required Income: Calculate the required gross monthly income.\newlinePercentage of income allowed for payment = 29%29\%\newlineRequired gross monthly income = Total monthly payment / 29%29\%\newlineRequired gross monthly income = $2044.58/0.29\$2044.58 / 0.29\newlineRequired gross monthly income = $7050.27\$7050.27

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