Question: Determine the maximum amount the couple has for a down payment. Use this to calculate the cost of a potential house if the down payment

Determine the maximum amount the couple has for a down payment. Use this to calculate the cost of a potential house if the down payment is 20% down or 10% down.

Their financial considerations:

Tims (new) yearly gross income: $75,000

Kims yearly gross income: $22,000

Combined monthly college loan payments: $220 (will be paid off in 10 years)

Monthly car payments: $375 (will be paid off in 16 months)

Credit Card 1: $170 per month (will be paid off in 5 months)

Credit Card 2: No outstanding balance (they pay the current balance each month)

Amount in Savings Account: $9,525 (theyd like to keep at least $2000 cushion for unexpected costs)

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