You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing costs are estimated to be 5% of the loan value. You have an annual salary of $48,000, and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (50bps per month) for a 30-year fixed rate loan. How much can you offer for the house?

CHOOSE

a. $188,452.03

b. $151,698.70

c. $14,396

d. $140,105