Estimate the maximum house value Emma can afford to buy. Assume the mortgage 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 7.25% with monthly payments. Assume that property tax rate in the city of Oxford is 1.1% per year based on property value; assume the hazard insurance premium is 0.6% per year based on property value and assume $75 per month for maintenance.

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