Can Edison and Hilary afford this home using the monthly income loan criterion? Next week, your friends Edison and Hilary want to apply to the Third Universal Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowiedge of personal finance, they've asked for your help in completing the Home Affordability Woriksheet that follows. To assist in the preparation of the worksheet, Edison and Hilary also collected the following information: - Their financial records report a combined gross before-tax annual income of $105,000 and current (premortgage) instaliment foan, credit cord, and car loan debt of \$1,531 per month. - Their property taxes and homeowner's insurance policy are expected to cost $2,325 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. - Ther have accumulated savings of $38,500 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%5 Use either your financial calculator or the maximum affordable mortgage loan formula to complete the following home affordibinity worksheet (wote: When completing the form, round each dollar amount to the nearest whole dallor. Unless labeled differenty, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of the table may also be used in the lower section.) MNXMUM AFFOADABLE MORTOAGE LOAN FORAULA Wiven these results, which statement regarding Edison and Hilary's mortgage qualification process and the purchase of their $155,000 target home is rue? Edison and Hilary qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Edison and Hilary do not quallfy to purchase their \$155,000 target home according to the Monthly Income Affordability Worksheet criterion. Can Edison and Hilary afford this home using the monthly income loan criterion? Next week, your friends Edison and Hilary want to apply to the Third Universal Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowiedge of personal finance, they've asked for your help in completing the Home Affordability Woriksheet that follows. To assist in the preparation of the worksheet, Edison and Hilary also collected the following information: - Their financial records report a combined gross before-tax annual income of $105,000 and current (premortgage) instaliment foan, credit cord, and car loan debt of \$1,531 per month. - Their property taxes and homeowner's insurance policy are expected to cost $2,325 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. - Ther have accumulated savings of $38,500 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%5 Use either your financial calculator or the maximum affordable mortgage loan formula to complete the following home affordibinity worksheet (wote: When completing the form, round each dollar amount to the nearest whole dallor. Unless labeled differenty, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of the table may also be used in the lower section.) MNXMUM AFFOADABLE MORTOAGE LOAN FORAULA Wiven these results, which statement regarding Edison and Hilary's mortgage qualification process and the purchase of their $155,000 target home is rue? Edison and Hilary qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Edison and Hilary do not quallfy to purchase their \$155,000 target home according to the Monthly Income Affordability Worksheet criterion
