What is the maximum conventional mortgage amount Celine can acquire with a weekly payment of $1,450, a 25-year amortization, and a 7-year term at 6.55%?

To determine the maximum conventional mortgage amount Celine can acquire with the specified payment parameters, it's essential to apply the principles of mortgage calculations. The weekly payment of $1,450 over a 25-year amortization and a 7-year term at an interest rate of 6.55% allows us to calculate the present value of the mortgage.

The calculation involves finding the loan amount that corresponds to the given weekly payment. In practice, this is done using a financial formula that incorporates the interest rate, payment frequency, and amortization period.

Given that the interest rate is annual, it needs to be converted to a weekly rate since the payment frequency is weekly. This involves dividing the annual interest rate by the number of weeks in a year. After calculating the effective weekly interest rate, the formula for the present value of an annuity can be applied to solve for the loan amount.

Using these calculations, the maximum mortgage amount Celine can obtain corresponds to $618,000. This amount aligns with the present value derived from her specified payment, term, and interest rate, thus confirming that it is accurate.

In this context, the correct choice represents the ideal balance between affordability for the borrower and lender risk assessment, helping Celine to maximize her