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You are ready to buy a house, and you have $ 8 0 , 0 0 0 for a down payment and closing costs. Closing

You are ready to buy a house, and you have $

80, 000

for a down payment and closing costs. Closing costs are estimated to be

3 %

of the loan value. You have an annual salary of $

105, 000 .

The bank will allow your monthly mortgage payment to equal

28 %

of your monthly income. The interest rate on the loan is

6 %

per year with monthly compounding

(. 5 %

per month

)

for a

30 -

year fixed

-

rate loan.

.

How much money will the bank loan you?

.

How much can you offer for the house?

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