Jennifer Creek is saving up for the closing costs (3,500) and down payment on a home. For better interest and savings on mortgage insurance, she must have a down payment of 20%. She can afford a monthly payment of $600 based on her earning and expenses. The amount available for the mortgage is reduced by an estimated $100 per month to cover home insurance and real estate taxes. The current nominal interest rate is 3% for a 30-year fixed rate mortgage loan. How much of a loan can she afford? What is the corresponding house price? How much must she save?

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