what does that answer of $144,000 mean for juan and gloria? is it: a) an estimate of the highest price they…

what does that answer of $144,000 mean for juan and gloria? is it: a) an estimate of the highest price they can afford to pay for a home b) the exact amount of money they should save before buying a home c) what their total annual income should be before buying a home

what does that answer of $144,000 mean for juan and gloria? is it: a) an estimate of the highest price they can afford to pay for a home b) the exact amount of money they should save before buying a home c) what their total annual income should be before buying a home

Answer

Brief Explanations:

In general, a common rule - of - thumb in real - estate is that a person or couple can afford a home that is about 3 times their annual income. So, $48,000\times3 = 144,000$ likely represents an estimate of the highest price they can afford to pay for a home.

Answer:

A. An estimate of the highest price they can afford to pay for a home