Rami and Sara Sayed are young married professionals. They have been renting a two-bedroom apartment in a major metropolitan area for the last two years. Their landlord has recently informed them that he will be increasing their rent to $1,500 per month for the coming year. Although they consider this amount an affordable housing expense, Rami and Sara are seriously thinking about buying a home instead of continuing to rent. They have collected the following information to use in making their decision:

Combined gross income:	$6,000 per month
After-tax income:	$5,000 per month
Car loan payments:	$550 per month
Credit card payments:	$150 per month
Student loan payments:	$230 per month
Available down payment:	$20,000
Expected closing costs:	$3,000
30-year fixed mortgage rate:	6 percent, 0 points
Estimated property tax:	$1,800 per year
Estimated homeowners ins:	$600 per year
Estimated maintenance costs:	$150 per month
Additional utilities:	$60 per month

(a) Assuming that the Sayeds do not want to spend more than $1,500 per month on total housing expenses, calculate the maximum price that they can afford to pay for a home?