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1. How much home can you afford? Customary ratios for a conventional mortgage require that: 1) monthly mortgage payments cannot exceed 25% of the borrower's

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1. How much home can you afford? Customary ratios for a conventional mortgage require that: 1) monthly mortgage payments cannot exceed 25% of the borrower's monthly gross (meaning before-tax income) and 2) the borrower's total monthly installment loan payments (including the mortgage payment) cannot exceed 33% of monthly gross income. If you have monthly gross income of $3,500 and student loan payments of $300/ mo, how much of a monthly mortgage payment (including taxes and insurance) can you afford? Hint: calculate both 1 and 2 requirements above, and choose the lower of the two

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