Find the highest affordable house price

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Reference no: EM13978698

Suppose you have $50,000 annual disposable income and would like to spend 30% of the income on the mortgage payment.

A. Find the highest affordable house price if a 30-year mortgage rate is 6.0%.

B. Due to low interest policy, as of January 10 of 2015, the 30 year mortgage rate was dropped to 3.0%. Find the highest affordable house price.

Reference no: EM13978698

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