Home affordability analysis

Use Worksheet $5\mathrm{.}3.$ Jonah and Gemma Powell need to calculate the amount that they can afford to spend on their first home. They have a combined annual income of $$87,500$ and have $$40,000$ available for a down payment and closing costs. The Powells estimate that homeowner's insurance and property taxes will be $$550$ per month. They expect the mortgage lender to use a $29$ percent $($of monthly gross income$)$ mortgage payment affordability ratio, to lend at an interest rate of $6$ percent on a $30-$year mortgage, and to require a $10$ percent down payment. Based on this information, use the home affordability analysis form in Worksheet $5\mathrm{.}3$ to determine the highest$-$priced home that the Powells can afford. Assume that closing costs are one$-$half of the down payment. Round the answer to the nearest dollar.