Assume the mortgage that terms that Emma will have are based on a fixed- rate, 30-year maturity, 80% LTV, with no points. The mortgage interest rate that she was quoted is 4.25% with monthly payments. Assume that property tax rate in the city of Oxford is 1.2% per year based on property value; assume the hazard insurance premium is 0.7% per year based on property value and assume $60 per month for maintenance.

Determine the required monthly mortgage payment and the maximum house value she can afford if she buys.