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) After determining the maximum house value for Emmas budget, select a house that Emma can afford and follow the instruction for the case.