You want to buy a house. The bank will lend you 80% of the purchase price. You can afford a monthly payment amount of $2,794.27. The mortgage rate is 7% APR. Assume a 30 year loan with monthly payments. What is the value of the house that you can afford (assuming you have enough saved for the required down payment)? Round to the nearest dollar and use the $ symbol.

Answer rating: 100% (QA)

To determine the value of the house you can afford we need to calculate the lo... View the full answer