Final answer:
The couple can borrow a maximum of $63,462 for their mortgage.
Step-by-step explanation:
To calculate the maximum loan they can afford, we need to use the present value formula. The formula is PV = R(1 - (1 + i)^(-n)) / i, where PV is the loan amount, R is the monthly payment, i is the monthly interest rate, and n is the number of payments.
In this case, the monthly payment is $650, the interest rate is 9% (0.09 as a decimal), and they intend to secure a 30-year mortgage (360 payments).
Plugging these values into the formula, we have: PV = 650(1 - (1 + 0.09)^(-360)) / 0.09.
Calculating this, the maximum loan they can afford is approximately $63,462.