Question: sue is planning to buy a house she has been...
Sue is planning to buy a house. She has been advised
by her financial planner that her monthly house
payment (which includes property taxes and insurance) should not exceed 30% of her take-home pay.
Currently, her take-home pay is $2000 per month. Her monthly property taxes will be approximately
$100 and her monthly homeowners insurance will be approximately $50. If Sue’s take-home pay is $2000
per month, and the mortgage is at 0.5% per month for 30 years, what is the maximum amount she can
borrow to buy her house?