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Assume that chris household income of $95,000 and his lender requires a down payment of 20% for a 30-year loan. The interest rate is 5%.

Assume that chris household income of $95,000 and his lender requires a down payment of 20% for a 30-year loan. The interest rate is 5%. He has his eye on a sweet looking home currently priced at $450,000.

1) Can he buy this home at the normal 28% front end ratio? Please show your work and explain why.

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