Question 1190577
mortgage payment is 1300 per month for 30 years at 7% interest.


if the interest is compounded monthly and the payment is at the end of each month, then you would be able to afford a loan for 195,399.84.
the interest would be that 468,000 minus that = 272,600.16.


if the interest is compounded monthly and the payment is at the beginning of each month, then you would be able to afford a loan for 196,539.67.
the interest would be 468,000 minus that = 271,460.33.


most of the time that i've seen these problems, the payment is at the end of the month and the interest rate is compounded monthly, so give the first option a try and, if not good, then give the second option a try.


let me know if you have any questions or need further clarification.
theo