Loan will be amortized over 25 years, what is the most that Charlie can afford to pay for the house

A lakefront house
in Kingston, Ontario is for sale with an asking price of
$499,000. The real-estate market has been quite active, so the house will
almost certainly attract several offers, and may sell for more than the asking
price. Charlie is very eager to purchase this house, but is concerned that he
may not be able to afford it. He has $130,000 available for a down payment, and
can pay up to $1,950.00 per month on a mortgage loan. As a long-time customer,
Charlies bank has offered him a great mortgage rate of 3.90 percent on a one-year
term. If the loan will be amortized over 25 years, what is the most that
Charlie can afford to pay for the house?
Topic: Mortgage Loans
Level of difficulty: Medium