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Can Olivia and Anthony Afford This Home Using the Installment Debt Loan Criterion? Vext week, your friends Olivia and Anthony want to apply to the

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Can Olivia and Anthony Afford This Home Using the Installment Debt Loan Criterion? Vext week, your friends Olivia and Anthony want to apply to the Fourth Global Bank for a mortgage loan. They are considering the purchase of a hom that is expected to cost $125,000. Given your knowledge of personal finance, they've asked for your help in cornpleting 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, Olivia and Anthony also collected the following information: - Their finandal records report a combined gross before-tax annual income of $125,000 and current (pre-mortgage) instalment loan, credit card, and car loan debt of $1,823 per month. - Their property taxes and homeowner's insurance policy are expected to cost 53,125 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 \$32,500 that can be used to satisfy the home's down payment and closing conto. - The lender requires a minimum 20% down payment, and instaliment loan atfordability ratios that range fram a minimum of 334 to a inaximum 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. Afso,-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, Given these results, which statement regarding OFivia and Anthony's mortgage quatification process and their purchase of their s 125,000 tatget home 5 true? Othia and Anthony do not qualify to purchase their $125,000 target home according to the instaliment Debt Alfordability Warkshe ef criterion. Otivia and Anthony qualify to purchase their \$125.000 target home according to the Instaliment Debt Affordability Worktheet criterion

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