As a lender, go through the information provided and determine if the clients qualify for their loan request. Jesiah and Cassandra Hamilton have been married for 2 years. They are presently living in an older home and have come to you seeking financing so that they can renovate their kitchen in their home. Jesiah has priced out the renovation project and brought in some written estimates. He estimates the cost of the renovation to be $35,000. Jesiah and Cassandra want to repay the loan over 5 years. Jesiah has taken a building construction course at NAIT is excited to use the skills he has learned. The Hamilton's house is valued at $395,000. The mortgage was for $363,400 with a 5-year term, amortized over 25 years at 2.54%. Please Calculate the Monthly Mortgage Payment: Number (1 mark) They have made 27 payments on the mortgage. Please calculate the balance owing on the loan. Number (1 mark) This branch approved the mortgage. Taxes are $329 a month and heating is estimated at $200. They currently have $6,500 in a joint savings account at the branch. Both of them contributes to an RRSP Jesiah has clear title to some undeveloped property 80 miles west of Edmonton he inherited a few years ago. It is currently valued at $75,000. Eventually Jesiah would like to build a cabin on the property but realizes that this is a long term-goal. Jesiah pays about $63 a month on the taxes. Cassandra also has recently received an expensive painting from her grandmother valued at $17,500 with a certificate of authenticity. Jesiah, 29, has been working for RV World for 6 years. He grosses $96,310 annually as lead Heavy Duty Mechanic, much of this is overtime income. Jesiah has provided his Notice of Assessments for his income verification as you has requested (see attached) Cassandra, 25, is in her last year at the U of A. Cassandra works part-time at the U of A bookstore as a cashier she has provided a salary letter, she grosses approximately $23,390 per year. Her manager informed her she was going to receive a 4% increase next month. 15 months ago Jesiah bought a Ram for $56,500 and financed it with a loan (from a competitor) for $50,900 at 5. 19% for 7 years compounded monthly. What is the monthly truck payment? Number (1 mark) What is the balance owing today for the truck? Number (1 mark) The current value of the Ram is estimated to be $39,200. Equifax shows he has never missed a payment and confirms that there are 69 months remaining on the installment loan. Ratings on their credit cards from Costco ($2,000 credit limit)R1, RBC VISA ($2,500 credit limit) are R2, they do however have a Capital One MasterCard with a R2 rating(credit limit $2,000). They both like the finer things in life, cards are continuously at the maximum credit limits. The do have a The Bay credit card reporting on their credit bureau with a limit of $4,500 but nothing is currently owing. Jesiah recently received an inheritance in the amount of $47,000. Currently he has it invested in a Bond Mutual Fund. Jesiah does not want to access these funds at this time and would like the funds to remain as is. He is planning on using these funds in the future to build a cabin on his land. Notice of Assessment for Jesiah Hamilton Tax year 2018 Line Description $ Amount 150 Total Income. $89,568 Deductions from total income.. $12,181 236 Net Income..... $77,387 Deductions from net income. 0 260 Taxable Income.. $77,387 350 Total federal non-refundable tax credits. $3,887 $2,826 6150 Total Alberta non-refundable tax credits. 420 Net Federal Tax. 421 CPP contributions. 435 Total Payable... 437 Total Income Tax Deducted.. 0.00 4,207.50 4,207.50 $23,603.04 175.62 credits. 420 Net Federal Tax. 421 CPP contributions 435 Total Payable.. Line 150 236 260 Description Total Income. Deductions from total income. Net Income. Deductions from net income. Taxable Income. $ Amount $89,568 $12,181 $77,387 0 $77,387 350 Total federal non-refundable tax $3,887 credits..... 6150 Total Alberta non-refundable tax 0.00 4,207.50 4,207.50 $2,826 437 Total Income Tax Deducted. $23,603.04 482 Total credits. 3,175.62 (Total payable minus Total 1031.88 credits). DR [Penalties. ....... DR 0.00 Arrears interest... Balance Due from this assessment... Balance due... DR 0.00 0.00 DR $-1,801 DR Line 150 236 260 Description Total Income.... Deductions from total income. Net Income.... Deductions from net income. Taxable Income... $ Amount $110,527 $15,253 $95,274 0 $95,274 350 Total federal non-refundable tax $3,736 $2,183 credits....... 6150 Total Alberta non-refundable tax credits.. 420 Net Federal Tax. 421 CPP contributions. 435 Total Payable........ 437 Total Income Tax Deducted. 0.00 4,207.50 4,207.50 $28,105.83 482 Total credits. 3,175.62 (Total payable minus Total 1031.88 credits)..... DR [Penalties.. DR 0.00 Arrears interest.. DR 0.00 Balance Due from this 0.00 assessment.. DR $1,727 Balance due. DR Cassandra's Income Confirmation Letter: Jackson Peters Human Resources Manager University of Alberta 116 St and 85 Ave Edmonton, Alberta T6G 2R3 February 12, 2022 To Whom This May Concern, This letter is to confirm that Cassandras Hamilton is an employee of the University of Alberta Bookstore. Cassandra has been working in a part-time position since September 15th 2020. Her annual salary is 23,390 per annum. If there are any questions or concerns, please feel free to call me at 780-452-3216. Thank you, Jackson Peters Calculate Jesiah's Monthly Income: Number (1 mark) Calculate Cassandra's Monthly Income(assume she is paid equally each month of the year): Number (1 mark) Calculate their assets and liabilities: (Do not leave any blank. Enter "0" if applicable.) ASSETS Property VALUES Number (1 mark) Bank Account Number (1 mark) Land Number (1 mark) Ram Investments Other Total Assets: Number (1 mark) Number (1 mark) Number (1 mark) Number (1 mark) LIABILITIES Mortgage VALUES MINIMUM PAYMENT Number (1 mark) Number (1 mark) Loan Costco Mastercard Number (1 mark) Number (1 mark) Number (1 mark) Number (1 mark) RBC Visa Number (1 mark) Number (1 mark) Bay credit card Number (1 mark) Number (1 mark) Capital One Card Number (1 mark) Number (1 mark) Total Liabilities: Number (1 mark) Calculate Net Worth from lender perspective: Number (1 mark) In reviewing their current financial situation, you would recommend that the Hamiltons also consolidate their consumer debts along with their renovation request Calculate the consolidation loan at 5.1% for 5 years. Monthly loan payment Number (1 mark) Calculate Jesiah and Cassandra's GDS Number %(1 mark) Calculate Jesiah and Cassandra's TDS Number %(1 mark) Do you approve the loan?(1 mark) No Yes You recommend to Jesiah and Cassandra that they consider using the Investment asset as collateral to reduce the interest rate on their loan from by 2%. Julia thinks this may be a good idea, calculate the loan payment at at this new rate. Number How does this change their TDS calculation? Number % They agree to use the Investment asset as collateral. What documentation is required? O Obtain a statement, verify the total, and secure collateral for the loan following your financial institution's processes. O Recent statement of investment account. Obtain a statement,make a note in your file that you are taking as collateral. O Register a message on your computer system for the investment account that it is taken as collateral for this loan. If you were to consider Cassandras income with the intended increase of 2%, what would you require in order to use for your file? O Call her employer to confirm and verify the raise A new letter confirming her new income total. Write a note on her existing letter that has been provided. Be sure to date and sign your name, Get her last two years NOAS and take the average. What information to you need to ensure that you payout all debt correctly? What if anything will you need to prepare? O Cut-up credit cards Confirmation of all balances of accounts being consolidated O Only payout letters are required. O Payout Letters and Cut-up credit cards