Dwight Schrute, Assistant to the regional manager at the Scranton branch of Dunder Mifflin has a gross monthly income of $3,150. He has 11 remaining monthly payments of $200 for supplies for his next beet crop and 51 remaining monthly payments of $5 on a loan for his impressive collection of mustard-colored dress shirts.

Dwight is considering abandoning Mose at Schrute Farms and buying a house that is selling for $129,500. The insurance and taxes on the property are $125 and $145 per month, respectively. Dwight's bank requires a 20% down payment, payable to the seller, and a payment of 2 points (a point is 1% of the amount borrowed), payable to the bank, at closing. The bank will approve a loan with a total monthly mortgage payment of principal, interest, property taxes and insurance that is less than 28% of Dwight's adjusted monthly income.

A) What is Dwight's down payment?

B) What is the mortgage amount?

C) Determine the closing costs (down payments and points)

D) What is 28% of Dwight's adjusted monthly income?

E) If Dwight wants a 30 year mortgage and the annual interest rate is 5.5%, determine the total monthly payment for the mortgage by first finding the payment for principal and interest and then adding the amounts for insurance and taxes.

F) Does Dwight qualify for the mortgage?