posted by Sara on .
Johnsons accumulated a nest egg of $40,000 to use as down payment toward a new home. Present gross income has them in high tax bracket, decided to invest min $2400/month in payments (for tax break). Financial obligations cannot exceed $3000/month. If local mortgage rates were increased to 8% for 30-year mortgage, how would this affect the price range of houses that the Johnsons should consider?