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# Suppose your annual income is $50,000 and your lender will allow you to have a mortgage payment that is no more than 33% of your

Suppose your annual income is $50,000 and your lender will allow you to have a mortgage payment that is no more than 33% of your monthly income after making other debt payments and paying property taxes, which in your case amount to $500 per month. If the current 30-year mortgage rate is 5%, approximately how large a mortgage can you qualify for (assuming you have the required cash for the necessary down payment)? a. $160,000 b. $161,000 c. $162,000 d. $163,000 e. none of the above

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