A couple found a house selling for $113,500 the taxes on the house are 1300 per year and insurance is 360 per year they are requesting a conventional loan from the local bank the bank is currently requiring a 50% down payment and three points and the interest rate is 10% the couples gross monthly income is 4850 they have more than 10 monthly payments remaining on a car a boat and furniture the total monthly payments for these items are $420 their bank will approve a loan that has a total monthly mortgage payment of principal and interest and property taxes and homeowners insurance that is less than or equal to 28% of their adjusted monthly income