Answer:
$630
Explanation:
The highest debt to ratio accepted by commercial banks that offer conventional loans is 36%. Some financial institutions may accept up to 43% debt to ratio, but the interest rates that they charge are higher (subprime interest rates).
We should use the 36% ratio to calculate the maximum monthly mortgage payment:
($3,000 x 36%) - ($350 + $50 + $50) = $1,080 - $450 = $630
