You are planning to buy a house. If you pay 20% down payment a lender offers you a 20 year balloon mortgage for the remaining 80% with 5.9% APR whereby you
can pay interest only for the first 5 years of the loan and then pay off the balance of the loan during the remaining 15 years (the first up charge month is
the second month of year 6). Property taxes are $2400 and Casualty Insurance is $1200 annually. During the first 5 years you would like to pay $1900 or
less to the lender (for the interest and escrow portion of the loan payment) due to a salary limitation. Since you expect a job promotion you will however
afford to increase the payments during the next 15 years as requested by the lender. Assume that you also have enough savings to pay for all necessary upfront
costs including insurance origination fee and the 20% down payment.

How expensive of a home can you purchase today?

What would your total monthly payments be for the remaining 15 years (including all Escrow costs).