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Your gross income is $4,000 per month You have $120 per month in other loan payments (auto loan, student loan, etc.) The average interest rate

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Your gross income is $4,000 per month You have $120 per month in other loan payments (auto loan, student loan, etc.) The average interest rate (APR) for house loans is 4% APR. You want a house loan with a term of 30 years with monthly payments. The monthly homeowners insurance premiums and property taxes will be $200 Using the 36% rule (Method 2) for determining your maximum mortgage, what is the maximum house loan that you can afford? A. $167,569 B. $234,597 C. $133,333 D. $259,732

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