Ace the PSI New Jersey Real Estate Test 2026 – Unlock Your Property Power!

To determine affordability, it’s important to calculate the expected principal and interest payments on the mortgage and compare it to their current rent of $1,750 per month. Using the mortgage constant formula for a fixed-rate mortgage can help in this analysis.

For a fixed-rate mortgage at 5% interest over 30 years, the monthly payment can be calculated using the formula for a fixed-rate mortgage payment, which considers the loan amount, interest rate, and loan term. When applying these figures, the monthly payment for a $249,000 mortgage should end up around $1,335. This amount is significantly below the couple's current rent payment of $1,750.

Since this mortgage payment is well within their rent budget, it suggests that they could afford the principal and interest payments on the mortgage without exceeding what they currently pay for rent. Thus, the finding that their payments would be manageable under these conditions aligns perfectly with the affordability assessment portrayed in the correct answer.