Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2500 and
plan to pay $130,000 as a down payment. Help them evaluate some mortgage options.
1. Nautical Bank offers a 30-year fixed rate mortgage with a nominal annual rate of 3.375%. What would be the most expensive house (mortgage loan amount plus down payment) the Finances could afford under this loan?