Katie and Tom are planning on having a family, and our looking to buy a house in Sparta, TN. Tom currently works as an assistant manager, getting paid a salary of $57,775 a year. While Katie works as a tutor at the local school full time at $8.25/hr They recently just bought a mini-van which they make monthly payments on of $394.76.When Tom was out of work they worked up credit card debt of $15,000, which they pay monthly payments of $325.54. Tom still pays 5% of his monthly income to his first wife for alimony payments. After a couple weeks of searching for a home they have found a home inside the city that they have negotiated a purchase price of $210,000. It was appraised by their appraiser who reported an estimate of market value of $210,000. Property taxes are based on the Sparta, Tennessee and White county current property tax rates A good place to start looking is the Tennessee Comptroller of the Treasury (http://www.tn.gov/comptroller/). Look for the "Office Functions" tab, then Property Assessments, then Assessment Information for Each County. They contacted their insurance agent for an estimate on homeowners insurance and she advised them to estimate the annual premium to be $4.21 per $1,000 of value. Tom contacted their bank and found that the bank would finance the property (if they qualify) with a 30 year, 80% LTV mortgage at an interest rate of 5.75% a.) Calculate the annual property taxes for this property. b.) Calculate the monthly payment for this loan. c.) Calculate what their total debt ratio would be? d.) Calculate their mortgage debt ratio? e.) Would Tom and Katie be able to qualify for the loan? f) What is the maximum monthly payment that Tom and Katie may qualify for