Estimate the maximum house value Emma can afford to buy.

Assume the mortgage that terms that Emma has is based on a fixed$-$rate, $30-$year maturity, $80\%$ LTV$,$ with no points. The mortgage interest rate that she was quoted is $7\mathrm{.}00\%$ with monthly payments. Assume that property tax rate in the city of Oxford is $1\mathrm{.}2\%$ per year based on property value; assume the hazard insurance premium is $0\mathrm{.}5\%$ per year based on property value and assume $$85$ per month for maintenance.

Determine the required monthly mortgage payment and the maximum house value she can afford if she buys. Emma is moving to Oxford her monthly housing budget is $$2900.$ This budget must cover housing expenses including rent and owners cost for example mortgage hazard insurance property taxes and homeowners association fees if any Emma's contract is for three years and is removable for three more her plan is to stay in the Oxford area for no more than eight years she has saved enough money for this transaction and plans to make a $20\%$ down payment on any house that she purchases