1. Grace wants to purchase a home with a list price of $250,000; she has a $25,000 down payment. Her salary is $85,000 per year. Currently, she has a $250 car payment and a student loan payment of $375. Her lender uses a housing expense ratio of 28% and a debt to income ratio of 37%. Her lender is offering her a 30 year fixed rate mortgage for 5%. The monthly insurance and property taxes are about $375. What is the maximum monthly mortgage payment the lender will allow Grace to make on her mortgage?
2. Mary and Carlos want to buy a $400,000 house. They have $50,000 for a down payment. Their lender is offering them a 30 year mortgage at 6.2%. What is their total mortgage payment (principal & interest + escrow)?