Can I afford this home? - part 2

12. Can I afford this home? - Part 2 Can Aiden and Jesse Afford This Home Using the Installment Debt Loan Criterion? Next week, your friends Aiden and Jesse want to apply to the Fourth Global 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. (Note: When completing the form, round each dollar amount to the nearest whole dollar.) To assist in the preparation of the worksheet, Aiden and lesse 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, credit card, and car loan debt of $2,115 per month. - Their property taxes and homeowner's insurance policy are expected to cost $1,550 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 $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 instaliment loan affordability ratios that range from a minimum of 33% to a maximum of 38% A table of monthly payments (necessary to repay a $10,000 loan) follows. Note: Unless labeled differently, 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. Remember to round each doliar amount to the nearest whole dollar: Siven these results, which statement regarding Aiden and Jesse's mortgage qualification process and their purchase of their $155,000 target home rue? Aiden and Jesse qualify to purchase their $155,000 target home according to the Installment Debt Affordability Worksheet criterion. Aiden and Jesse do not qualify to purchase their $155,000 target home according to the Installment Debt Affordability Worksheet criterion