Chapter $15$ PowerPoint

he Schusters have saved $$165,000$ for the down payment on a home. Their gross monthly income is $$6,300.$ hey want to know the maximum mortgage loan for which they can qualify in order to determine the highest ice they can pay for a home. They have $18$ payments of $$600$ per month remaining on their car loan. Their nk has upper limits of $32\%$ for the GDS ratio and $40\%$ for the TDS ratio.

a$)$ Allowing for property taxes of $$\frac{300}{?}$ month and heating costs of $$\frac{225}{?}$ month, what maximum monthly mortgage payment do the GDS and TDS ratios permit?

b$)$ What is the maximum mortgage loan for which the Schusters can qualify? $($Use a $25-$year amortization and an interest rate of $5\mathrm{.}34\%$ compounded semiannually for a five$-$year term. Round the answer to the nearest $$100.)$

c$)$ Based on a $$165,000$ down payment and the maximum loan from part $($b$),$ what is the highest price they can pay for a home? Round to the nearest $$100.$