         AMOUNT OF LOAN HOME BUYER CAN AFFORD

ONE SIMPLE METHOD FOR DETERMINING WHETHER TO GIVE A MORTGAGE
TO AN APPLICANT IS TO SEE IF THE MONTHLY MORTGAGE PAYMENT
WOULD BE MORE THAN A CERTAIN FIXED PER CENT OF THAT
APPLICANT'S GROSS MONTHLY INCOME. IN THIS PROGRAM THE
MORTGAGE INTEREST RATE AND TERM IS KNOWN, ALONG WITH THE
APPLICANT'S GROSS MONTHLY INCOME AND THE FIXED PER CENT
MENTIONED ABOVE. IN ADDITION WE KNOW WHAT PER CENT OF THE
MONTHLY PAYMENT GOES FOR TAXES AND INSURANCE(MORTGAGE PAYMENT
IS NOT ALL FOR BANK). WITH THIS INFORMATION THE PROGRAM OUTPUTS
THE MAXIMUM MORTGAGE AMOUNT THAT THE APPLICANT CAN SUPPORT

PRESS ENTER TO BEGIN? 
ENTER APPLICANT'S GROSS MONTHLY INCOME   ? 1234
ENTER FIXED PER CENT                     ? 5
ENTER TAX-INS % OF TOTAL PAYMENT         ? 25
ENTER ANNUAL MORTGAGE INT RATE(%)        ? 3.75
ENTER LENGTH OF MORTGAGE(YEARS)          ? 30

MAXIMUM MONTHLY PAYMENT AMOUNT IS      $62
CONTAINING INSURANCE AND TAXES OF    $15.42
MAXIMUM MONTHLY PAYMENT FOR MORTGAGE IS    $46.28

MAXIMUM MORTGAGE LOAN AVAILABLE IS    $9992

PRESS ENTER FOR MORE COMPUTATION? -1
