Suppose your gross annual income is $$48,000$ and suppose you pay $34\%$ of your income in taxes and other deductions. What is your net $($take$-$home$)$ annual income?

$

Now let's find your net monthly income.

$

According to one financial advisor we should spend no more than $25\%$ of our net monthly income on a mortgage. This is referred to as a "conservative approach". How much can we spend? $($link is provided to satisfy your curiosity, you don't need it to answer these questions$)$

Use a mortgage calculator $($one that incl$$ies taxes and insurance, like at bankrate$)$ to find the total cost of a house you can afford using this conservative approach. You will need to use a guess and check approach to find the total monthly payments that match $25\%$ of your net monthly income $($based on an annual income of $$48,000).$ Use a $15$ year term on the mortgage, $20\%$ down payment, and an annual interest rate of $6\mathrm{.}72\%.$

$$

The average cost of a home in Gladstone, OR is $$440,000.$ Reflect on the above$-$described "conservative" approach if you want to buy a home in Gladstone.