Using a financial calculator for mortgage loans

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Reference no: EM1366912

Lucy wishes to buy a house and has approached a bank and been informed that a thirty year mortgage loan with monthly payments and compounding would have an APR of 5.4 percent. She has saved enough to put down 20% for the purchase and will finance the other 80%. Given her income level, she feels that she can afford a monthly house payment of $800.
1. How much money will she be able to borrow from the bank?
2. How much can she afford to pay for the home?

Reference no: EM1366912

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