Suppose you have saved $20,000 for a down payment on a house. You are considering buying a house by issuing a conventional, 30-year, 4.5 percent mortgage and you do not want to pay for private mortgage insurance.
Your monthly income is $4,600 and you make non-housing related monthly debt payments of $500.
You estimate that homeowner's insurance and property taxes will be about $425 per month.
How much house can you qualify to purchase assuming you have a good credit score?