Question: Determine the maximum 30-year fixed-rate mortgage amount for which a couple could qualify if the rate is 4.5 percent. Assume they have other debt payments

Determine the maximum 30-year fixed-rate mortgage amount for which a couple could qualify if the rate is 4.5 percent. Assume they have other debt payments totaling $500 per month and a combined annual income of $45,500. Monthly escrow payments for real estate taxes and homeowner's insurance are estimated to be $125.

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