1. Estimate the maximum house value Emma can afford to buy. Assume the mortgage that terms that Emma will have are based on a fixed-rate, 30-year maturity, 80% LTV, with no points. The mortgage interest rate that she was quoted is 4.0% with monthly payments. Assume that property tax rate in the city of Oxford is 0.9% per year based on property value; assume the hazard insurance premium is 0.5% per year based on property value and assume $50 per month for maintenance. Determine the required monthly mortgage payment and the maximum house value she can afford if she buys. (10 points)