Can Josh and Mia Afford This Home Using the Installment Debt Loan Criterion? Next week, your friends Josh and Mia 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 $245,000. 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, Josh and Mia 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 $1,838 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 home's down payment and closing costs. - The lender requires a minimum 20% down payment, and installment 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 dollar amount to the nearest whole dollar. iven these results, which statement regarding Josh and Mia's mortgage qualification process and their purchase of their $245,000 target home is se Josh and Mia qualify to purchase their $245,000 target home according to the Installment Debt Affordability Worksheet criterion. Josh and Mia do not qualify to purchase their $245,000 target home according to the Installment Debt Affordability Worksheet criterion