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Can Simone and Rajiv afford this home using the installment debt loan criterion? Next week, your friends Simone and Rajiv want to apply to the

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Can Simone and Rajiv afford this home using the installment debt loan criterion? Next week, your friends Simone and Rajiv 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 $245,000. 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, Simone and Rajiv 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 $3,675 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 instaliment loan affordability ratios that range from a minimum of 33% to a maximum of 38% Use either your financial calculator or the maximum affordable mortgage foan formula to complete the following home affordabinty worksheet. (Note: When completing the form, round each doliar amount to the nearest whole dollar. Uniess tabeled differentby, all of the following values represent dollar amounts. Aiso, some values caiculated or used in the upper section of the table may also be used in the iower section. Round your percentage answer to two decimat places.) ven these results, which statement regarding Simone and Rajiv's mortgage qualification process and the purchase of their $245,000 target home is se? Simone and Rajiv do not qualify to purchase their $245,000 target home according to the Instaliment Debt Affordability Worksheet criterion. Simone and Rajiv qualify to purchase their $245,000 target home according to the Instaliment Debt Alfordability Worksheet criterion

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