Todd and Samantha, a dual income couple in their early thirties, have seen a home that they really like. The home is listed for $600,000 and the vendor is firm on the price. The couple have saved $100,000 for down payment and have a maximum budget of $2000 per month for a mortgage loan payment. The have set this limit as they would still have to pay for property taxes and other expenses. The best mortgage loan offer they have is a 25 year loan with 5% compounded semi-annually from TruNord Mortgages Inc. 

Can Todd and Samantha afford the $600,000 home given the provision for down payment and their maximum budget?

Answer rating: 100% (QA)

1 Loan Amount Home Price 600000 Down Payment 100000 Loan Amount Home Price Down Payment 600000 10000... View the full answer