Can Jacob and Madison Afford This Home Using the Monthly Income Loan Criterion? Next week, your friends Jacob and Madison want to apply to the Tenth National Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $185,000. Given your knowledge of personal finapce, 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, Jacob and Madison also collected the following information: - Their financial records report a combined gross before-tax annual income of $85,000 and current ( p remortgage) instaliment ioan, credit card, and car loan debt of $1,240 per month. - Their property taxes and homeowner's insurance policy are expected to cost \$1,388 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 $44,500 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%. 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 usec table may also be used in the lower section.) iven these results, which statement regarding Jacob and Madison's mortgage qualification process and their purchase of their $185,000 target home true? Jacob and Madison qualify to purchase their $185,000 target home according to the Monthly Income Affordablity Worksheet criterion. Jacob and Madison do not qualify to purchase their $185,000 target home according to the Monthly Income Affordablity Worksheet criterion