11. Can I afford this home? - Part 1 Can Kate and Hubert afford this home using the monthly income loan criterion? Next week, your friends Kate and Hubert want to apply to the Fifth State Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, theyve asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Kate and Hubert also collected the following information: - Their financal records report a combined gross before-tax annual income of $85,000 and current (premortgage) instaliment loan, credit card, and car loan debt of $1,240 per month. - Their property taxes and homeowner's insurance policy are expected to cost $1,550 per year. - Their bist estimate of the interest rate on their mortgage is 7.5%, and they are interested in obeaining a 15-year loan. - They have accumulated savings of 338,500 that can be used to satisfy the home's down payment and closing costs. - The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30\%. Use eicher your financial calculator or the maximum affordable mortgage loan formula to complete the following home affordabwing worksheet. (Note: When completing the form, round each dollar amount to the nearest whale doilar, Unless labeled differently, all of the following vaives represent dollor amounts: Also, some values calculated or used in the upper section of the table may also be used in the fower section.) Given these results, which statement regarding Kate and Hubert's mortgage qualification process and the purchase of their-\$155,000 target home is true? Kate and Hubert do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Kate and Hubert qualify to purchase their $155,000 target home according to the Monthly income Affordability Worksheet criterion. 11. Can I afford this home? - Part 1 Can Kate and Hubert afford this home using the monthly income loan criterion? Next week, your friends Kate and Hubert want to apply to the Fifth State Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, theyve asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Kate and Hubert also collected the following information: - Their financal records report a combined gross before-tax annual income of $85,000 and current (premortgage) instaliment loan, credit card, and car loan debt of $1,240 per month. - Their property taxes and homeowner's insurance policy are expected to cost $1,550 per year. - Their bist estimate of the interest rate on their mortgage is 7.5%, and they are interested in obeaining a 15-year loan. - They have accumulated savings of 338,500 that can be used to satisfy the home's down payment and closing costs. - The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30\%. Use eicher your financial calculator or the maximum affordable mortgage loan formula to complete the following home affordabwing worksheet. (Note: When completing the form, round each dollar amount to the nearest whale doilar, Unless labeled differently, all of the following vaives represent dollor amounts: Also, some values calculated or used in the upper section of the table may also be used in the fower section.) Given these results, which statement regarding Kate and Hubert's mortgage qualification process and the purchase of their-\$155,000 target home is true? Kate and Hubert do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Kate and Hubert qualify to purchase their $155,000 target home according to the Monthly income Affordability Worksheet criterion
