A couple found a house selling for $112,500. The taxes on the house are $1400 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4950. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $430. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income.