Question
Determine the maximum 30-year fixed-rate mortgage amount for which a couple could qualify if the rate is 4.50 percent. Assume they have other debt payments
Determine the maximum 30-year fixed-rate mortgage amount for which a couple could qualify if the rate is 4.50 percent. Assume they have other debt payments totaling $500 per month and a combined annual income of $45 comma 500. Monthly escrow payments for real estate taxes and homeowner's insurance are estimated to be $125. (Assume a 36 percent maximum of annual income for total debt and escrow payments.) The maximum 30-year fixed-rate mortgage amount for which a couple could qualify if the rate is 4.50% is $ nothing. (Round to the nearest dollar.)
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