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Mr. and Mrs. Smith are considering the purchase of a house. They can budget a mortgage payment (P&I) of $1,400 per month. (a) if the

Mr. and Mrs. Smith are considering the purchase of a house. They can budget a mortgage payment (P&I) of $1,400 per month. (a) if the current mortgage rate is 4.25% for a 30 year mortgage and they make a down payment of 20% of the purhcase price, can they buy a house costing $300,000? (B) what is the maximum amount they can borrow?

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