1. What is the maximum house price you can afford if your gross monthly income is $60,000, you have $1,500 in monthly long-term obligations, and you can make a down payment of 20% of the home price given the following lender's loan parameters?

Interest rate: 7.5%

Loan Type: 15 years

Housing Expense Ratio: 25%

Total Debt Ratio: 35%

A) $154,385.47

B) $127,199.05

C) $161,810.14

D) $80,906.07

2. Which type of lien is superior to all other liens listed below?

A) Mortgage lien

B) Mechanics lien

C) an unpaid balance from an auto repossesion

D) a civil suit judgement ruling agaisnt you

E) there is not enough info to answer this question