To determine the maximum amount you can borrow (PV), we can use the formula for the present value of an ordinary annuity, which is commonly used in loan calculations:

$PV = \frac{PMT \times \left(1 - (1 + \frac{RATE}{12})^{-NPER \times 12}\right)}{\frac{RATE}{12}}$

Where:

• $PMT = 23,425$ (monthly payment)
• $RATE = 6.25\%$ (annual interest rate)
• $NPER = 25$ (loan amortization period in years)

First, we convert the annual interest rate to a monthly rate by dividing by 12, and the number of periods by multiplying the number of years by 12.

Let's calculate it.

The most you can borrow, given the conditions, is approximately $3,551,021.

Would you like more details or have any questions? Here are 5 related questions that may interest you:

1. How would the loan amount change with a different interest rate?
2. What if the loan term was 30 years instead of 25 years?
3. How does compounding frequency affect the loan amount?
4. What impact does making an additional lump-sum payment have on the loan?
5. How can I calculate the total interest paid over the loan term?

Tip: Always double-check the terms of your loan to understand how interest is compounded and what fees might apply.