Question: A young couple decide to take advantage the current first-time home buyer credit and buy a new house. With their combined income, they can afford

A young couple decide to take advantage the current first-time home buyer credit and buy a new house. With their combined income, they can afford to make a maximum of $650 monthly payment. With their credit history, they can borrow a 30-year fixed rate mortgage loan at 6.9% (mortgage loans compound monthly). What's the maximum amount they can borrow?

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