1. What is the maximum house price you can afford if your gross monthly income is $60,000, you have $1,500 in monthly long-term obligations, and you can make a down payment of 20% of the home price given the following lender's loan parameters?
Interest rate: 7.5%
Loan Type: 15 years
Housing Expense Ratio: 25%
Total Debt Ratio: 35%
A) $154,385.47
B) $127,199.05
C) $161,810.14
D) $80,906.07
2. Which type of lien is superior to all other liens listed below?
A) Mortgage lien
B) Mechanics lien
C) an unpaid balance from an auto repossesion
D) a civil suit judgement ruling agaisnt you
E) there is not enough info to answer this question