A couple is currently leasing a townhouse with a monthly rent of $1,900 per month. They have decided that they want to stay in the city where they are currently living and wish to purchase a home so that their monthly housing costs go toward something that they own.

They have identified a home that they want to purchase.

The home is listed for $285,000

Houses in the neighborhood have been selling for 93% of list price

Property taxes are estimated to be 2.2% of the value of the home

Insurance is estimated to be 0.90% of the value of the home

Homeowner's Association dues are $60 per month

In the event the lender requires private mortgage insurance, the annual premium is 1.20% of the original loan amount.

Their combined gross annual income is $126,500. They also owe money on two loans:

A vehicle loan with a monthly payment of $725

A student loan with a monthly payment of $425

...

the couple's bank uses a maximum back-end ratio of 40% in their total debt capacity ratio. how much additional monthly payments can the couple afford if...

if they put down 15% of the purchase price?

if they put down 20% of the purchase price?