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Hector and Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large,

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Hector and Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi- national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every tires years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make 58,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them thay have monthly payment of S400 in student loans and $700 in car loans, and their credit cards payments average S450 per month. They currently loase a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. Based on their incomes, how large of a PITI can they comfortably afford to pay O Based on the 36 percent rule, they can afford S1.330 per month Based on the 36 percent rule, they can afford $2,880 per month Based on the 28 percent rule, they can afford S1,344 per month Based on the 36 percent rule, they can afford $1,728 per month

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