The Jones family has decided to build a new house. The contractor has quoted the family a price of $135,700. The taxes on the house will be $2350 per year, and fire insurance will be $350 per year. They have applied for a conventional 20 year loan from a local bank. The bank is requiring a 35% down payment and three points and is offering an interest rate of 9.5%. The Jones’s annual income is $54,000. They have more than 6 monthly payments remaining on each of the following: $218 on a car, $120 on new furniture, and $190 on a camper.

Determine their adjusted monthly income. Adjusted monthly income is equal to gross monthly income minus any fixed monthly payments with more than 6 payments remaining.