Next week, your friends Josh and Mia want to apply to the Third Universal Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $245,000. To prevent their possible embarrassment at the bank, and given your knowledge of personal finance, they've asked you to help answer the following questions by completing the home affordability worksheet that follows: What is the minimum and maximum annual housing expense allowable by the bank, given Josh and Mia's combined annual income? What is the minimum and maximum total monthly debt obligation allowable by the bank, given Josh and Mia's combined monthly income? . Given their existing debt obligations, what is the maximum additional mortgage obligation that Josh and Mia can reasonably expect the bank to consider next week? To assist in the preparation of the worksheet, Josh and Mia have 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 best estimate of the interest rate on the new 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. Note: When completing the form, round each dollar amount the nearest whole dollar. Unless labeled differently, all of the values in the worksheet represent dollar amounts. Also, this problem contains additional information that may not be necessary to generate your solutions to the questions.

Next week, your friends Josh and Mia want to apply to the Third Universal Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $245,000. To prevent their possible embarrassment at the bank, and given your knowiedge of personal finance, they ve asked you to help answer the following questions by corpleting the home affordability worksheet that follow: - What is the minimum and maximum annual housing expense allowable by the bark, given Josh and Mia's combined annual income? - What is the minimum and maximum total monthly debt oblegation allowable by the bank, given Josh and Ma's combined monthly income? - Given their existing debt obligations, what is the moxumum additional mortgage obligation that Josh and Mia can reasonably expect the bank to convider next week? To assist in the preparation of the worksheet, losh and Mia have collected the following information: - Their financal records report a combined gross, before tox, annual income of $145,000, and current (pre mortgage) installment loan, credit card and car loan, debt of $2,115 per month: - Their best estimate of the enterest rate on the new moitgage in 7.5%, and they are interested in obtaining a 15 vear loan. - Ther have accumulated savings of $56,500 that can be used to satisfy the home's down parment and closing costs. - The lender requires a minumum 20% down parment Note When completing the form, round each dollar amount to the neareat whole dollar, Unless labeled differently, all of the values in the worksheet represent dollar amounts. Afso, this probilen corsains additional information that may not be necessary to generate vour solutions to the guestions: Home Affordability Worksheet Based on the Front-end ratio 1. Annual income 2. Lender's front-end income affordability ratio 3. Maximum allowable annual housing (PIT) payment 4. Maximum allowable monthly housing (PIT) payment Based on the Back-end ratio 5. Monthly income 6. Existing monthly installment payments 7. Existing monthly installment payments as percentage of monthly income 8. Lender's monthly instaliment loan affordability ratio 9. Maximum amount of total monthly alfordable installment debt 10. Maximum monthly mortgage payment (PIT), given existing debt payments