Question: Suppose you have saved $20,000 for a down payment on a house. You are considering buying a house by issuing a conventional, 30year, 4.5 percent

Suppose you have saved $20,000 for a down payment on a house. You are considering buying a house by issuing a conventional, 30year, 4.5 percent mortgage and you do not want to pay for private mortgage insurance. Your monthly income is $4,600 and you make nonhousing related monthly debt payments of $500. You estimate that homeowner's insurance and property taxes will be about $425 per month. How much house can you qualify to purchase assuming you have a good credit score?

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