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You wish to qualify for a $200,000 mortgage. Your monthly payment (principal and interest) must not...

You wish to qualify for a $200,000 mortgage. Your monthly payment (principal and interest) must not exceed 25% of your monthly income. Your monthly payment plus taxes and homeowner’s insurance must not exceed 28% of your monthly income. Your monthly payment, taxes, insurance, and other debt payments must not exceed 33% of your monthly income. The loan is for 30 years. Interest rates for these loans are 7%. Taxes and insurance are $250 per month and you have a $300 car payment. Which of the following best describes how high your monthly income needs to be for you to qualify?

  1. $5,500
  2. $5,600
  3. $5,650
  4. $5,700
  5. $ $5750

Show me how it's done on financial calculator, and please show me how you get the monthly payment and interest *IMPORTANT*. I can't be happy about getting an answer when this is left vague, because I still get lost in the middle.

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