Boris and Mihaela want to purchase a new home. Their combined income is $118 000, and they have saved enough for a down payment of $200 000 The couple’s debt payments include a car loan payment of $450 and a student loan payment of $173. The couple believes that they will live in their new home for a number of years and, as a result, would like to consider a five-year fixed term mortgage at 5.14 percent, compounded semi-annually, over a 25-year amortization. The couple has estimated annual property taxes, heating costs, and home insurance premiums to be $3125, $1700, and $625, respectively. Use the formula for the total debt service (TDS) ratio to determine the maximum mortgage that the couple would qualify for assuming that their TDS cannot be higher than 40 percent. Taking into consideration their down payment, what is the maximum value of the home for which they would qualify?