Assignment: Chapter 05 Making Automobile and Housing Decisions Can Bob and Cho afford this home using the installment debt loan criterion? Next week, your friends Bob and Cho want to apply to the finh State Bank for a mortgage ioan, They are considering the purchase of a home that is axpected to cost 3245.000. Given your knowiedge of persoal finance, they've asked for your help in campleting the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Bob and Cho also collected the following information: - Their financial records report a combined gross before-tax annual income of $145,000 and current (pre-mortgage) installment loan, credie card, and car loan debt of $2,115 per month. - Their property taxes and homeowner's ineurance policy are expected to cost $3,675 per year. - Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15 -year loan. - They have accumulated savings of $56,500 that can be used to satisfy the homes down payment and closing costs. - The lender requires a minimum 20\% down payment, and installment loan affordabilty ratios that range from a minimum of 33% to a maximum of 38%. Use eicher your financial calculator or the maximum afferdabie martgage foan formula to complete the following home affordabilly worksheet. (Note: When completing the farm, round each dollar amount to the nearest whole doliar. Unfess fabeied differentiy, all of the following vakues represent dollar amounts. Also, some values cinlculated or used in the upper section of the table may also be used in the fower section, Round your percentage answer to two decimal places) Use either your financial calculator or the maximum affordable mortgage foun formula to complete the following home afforidabuty workshist: (Note: When campleting the form, round each dollar amount to the nearest whole dollar. Unless labeled diferenty, alf of the following vaiues represent dollar Mounts. AlSD, same values calculated or used in the upper section of the table may also be used in the fower section. Round your percentage answer to two decimai piaces.) Given these results, which statement regarding Bob and Cho's mortgsge qualfication process and the purthase of their $245,000 torget home is true? Bob and Cho qualify to purchase their $245.000 target home according to the listaliment Dest Affordability Worksheet criterion. Acb and Cho do not qualify to purchase their $245.000 target home accoroing to the Instaliment Debt Aftordabiley Warketheet eriterion. Assignment: Chapter 05 Making Automobile and Housing Decisions Can Bob and Cho afford this home using the installment debt loan criterion? Next week, your friends Bob and Cho want to apply to the finh State Bank for a mortgage ioan, They are considering the purchase of a home that is axpected to cost 3245.000. Given your knowiedge of persoal finance, they've asked for your help in campleting the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Bob and Cho also collected the following information: - Their financial records report a combined gross before-tax annual income of $145,000 and current (pre-mortgage) installment loan, credie card, and car loan debt of $2,115 per month. - Their property taxes and homeowner's ineurance policy are expected to cost $3,675 per year. - Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15 -year loan. - They have accumulated savings of $56,500 that can be used to satisfy the homes down payment and closing costs. - The lender requires a minimum 20\% down payment, and installment loan affordabilty ratios that range from a minimum of 33% to a maximum of 38%. Use eicher your financial calculator or the maximum afferdabie martgage foan formula to complete the following home affordabilly worksheet. (Note: When completing the farm, round each dollar amount to the nearest whole doliar. Unfess fabeied differentiy, all of the following vakues represent dollar amounts. Also, some values cinlculated or used in the upper section of the table may also be used in the fower section, Round your percentage answer to two decimal places) Use either your financial calculator or the maximum affordable mortgage foun formula to complete the following home afforidabuty workshist: (Note: When campleting the form, round each dollar amount to the nearest whole dollar. Unless labeled diferenty, alf of the following vaiues represent dollar Mounts. AlSD, same values calculated or used in the upper section of the table may also be used in the fower section. Round your percentage answer to two decimai piaces.) Given these results, which statement regarding Bob and Cho's mortgsge qualfication process and the purthase of their $245,000 torget home is true? Bob and Cho qualify to purchase their $245.000 target home according to the listaliment Dest Affordability Worksheet criterion. Acb and Cho do not qualify to purchase their $245.000 target home accoroing to the Instaliment Debt Aftordabiley Warketheet eriterion
