3. I can only afford a house payment of $1300 per month. At an interest rate of 6.5% and a 30 year loan, how much can I afford to borrow? 4. Let's purchase a house valued at $225,000 by making a 10% down payment and financing the rest with a 30 year loan at 7%. The yearly homeowner's insurance is $600, and property taxes will be 1.5% (of the property value) a year. We'll be paying for this every month too. What will be our total monthly payments, including principal, interest, taxes and insurance? Mortgage lenders tell us that our monthly housing expenses (loan payment + tax and insurance) should not ceed 28% of our gross monthly income. If you make $50,000 a year, what is the maximum monthly sing expense you can afford? Can you afford the house in 4a.? Explain. . What will be the monthly payments for a $10,000 student loan (APR=4%) that you have ten years to repay? If you only make the monthly payments, how much will you pay in total for this loan? How much is interest?