Assume you are interested in purchasing a $350,000 house with the following characteristics:

- 80% Loan to Value Loan @ 4% interest (30yr, fully amortized)

- Property taxes = 1.2% of purchase price per year

- Homeowners Insurance = $1,000/yr

- Homeowners Association Dues = $200/mo

- Payment-to-Income Ratio = 28%

-Total Obligations-to-Income Ratio = 35%

A. How much do you have to earn to afford this house (assuming zero consumer debt)

B. Will you still be able to afford the house if you have $300/mo in student debt payments