Can I afford this home? $-$ Part $1$

Can Paolo and Sharon afford this home using the monthly income loan criterion?

Next week, your friends Paolo and Sharon 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 knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows.

To assist in the preparation of the worksheet, Paolo and Sharon also collected the following information:

Their financial records report a combined gross before$-$tax annual income of $$85,000$ and current $($premortgage$)$ installment loan, credit card, and car loan debt of $$1,240$ per month.

Their property taxes and homeowner's insurance policy are expected to cost $$3,488$ per year.

Their best estimate of the interest rate on their mortgage is $7\mathrm{.}5\%,$ and they are interested in obtaining a $15-$year loan.

They 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 $30\%.$