Can Susan and Raphael afford this home using the monthly income loan criterion?

Next week, your friends Susan and Raphael 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 $$310,000.$ 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, Susan and Raphael also collected the following information:

Their financial records report a combined gross before$-$tax annual income of $$187,500$ and current $($premortgage$)$ installment loan,

credit card, and car loan debt of $$1,953$ per month.

Their property taxes and homeowner's insurance policy are expected to cost $$5,425$ per year.

Their best estimate of the interest rate on their mortgage is $7\mathrm{.}5\%,$ and they are interested in obtaining a $15-$year loan.

They have accumulated savings of $$69,500$ that can be used to satisfy t Pme'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

$30\%.$

Maximum Purchase Price Based on Monthly Income

Given these results, which statement regarding Susan and Raphael's mortgage qualification process and the purchase of their $$310,000$ target home

is true?

Susan and Raphael do not qualify to purchase their $$310,000$ target home according to the Monthly Income Affordability Worksheet

criterion.

Susan and Raphael qualify to purchase their $$310,000$ target home according to the Monthly Income Affordability Worksheet criterion.