A couple wants to purchase a new house and feel that they can afford a mortgage payment of $600 a month. They are able to obtain a 20-year 7.1% mortgage (compounded monthly) but must put down 30% of the cost of the house. Assuming that they have enough savings for the down payment, how expensive a house can they afford. Explain briefly

Answer rating: 100% (QA)

To determine the maximum house price the couple can afford we need to use the mortgage formula to ca... View the full answer