You want to buy a house and you can make an initial payment, Financial Management

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You want to buy a house and you can make an initial payment

You want to buy a house, and you can make an initial payment of $20,000 and can afford monthly payments of at most $1,500. If the APR on variable-rate mortgage loans is 3.6% and you finance the purchase over 30 years, what is the maximum price you can pay for the house?

You just bought the house and got your loan approved, but the variable rate suddenly changes to 12%, what will happen to your monthly payment?

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