Final answer:
Carlos can afford a maximum monthly house payment of $1,865 after considering his other debts and following Conventional guidelines which recommend that total monthly debts not exceed 36% of gross monthly income.
Step-by-step explanation:
The subject of this question is Mathematics, as it deals with calculating how much house payment Carlos can afford based on his annual income and monthly expenses, following Conventional loan guidelines.
Typically, financial experts suggest that a person's monthly housing expenses should not exceed 28% of their gross monthly income.
First, we need to calculate Carlos's gross monthly income, which is $82,000 divided by 12 months, equaling $6,833.33 per month.
Then, we need to calculate his total monthly debt payments, which are $350 (car) + $95 (credit cards) + $150 (student loan) = $595.
According to Conventional loan guidelines, if we take 28% of his monthly income for housing, that would be $1,913.33.
However, we must also consider his other monthly debts when calculating what he can afford.
Conventional guidelines also state that a person's total monthly debt payments (including the house payment) should not exceed 36% of their gross monthly income.
This totals $2,460 ($6,833.33 x 0.36). After subtracting his monthly debts from this amount, Carlos can afford a maximum monthly house payment of $1,865 ($2,460 - $595).