Nick found his dream home that has a purchase price of $192,000. nick earns $3,325 a month and wants to spend no more than 30% of his income on his mortgage payment. he has saved up $35,000 for a down payment. nick is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. what modification can be made to this loan to make it a viable option, given nick’s situation?

answers:

a. change to a 15 year fixed loan

b. change the interest to 6%

c. change the down payment to 18% down

d. none. this is a viable option for nick.