Ted has worked as a mechanic for the past 8 years. Several months ago, Ted resigned from his previous employment and took a job as a mechanic with a different company at a higher pay. Ted's regular salary is $40,000. Over the past five years, he has averaged $3,000 in overtime and/or bonus income, although that has varied greatly. Some years there has been no extra income, one year it was as high as $6,000. His new employer has the same overtime/bonus policies as his previous employer. Ted currently has a total of $20,000 in his savings and checking account, which includes a recent deposit in his savings account of $8,000. Alice has worked for a business software company for the past seven years. Her income has grown steadily over the years, most recently reaching $50,000 last year. About 50% of her income is in the form of commissions, which has accounted for almost all of her increased earnings. Alice has a total of $15,000 in her checking and savings accounts. Here are Ted's monthly expenses: Ted has several credit cards, but only uses one on any regular basis. The account requires a minimum payment each month of $25, but Ted almost always pays off the entire balance each month and hasn't had a financed balance in over a year. Ted's car payment is $250 per month. Alice has only one credit card, which currently has a financed balance of $3,000. Her minimum payment is $50 per month. Alice has student loan payments of $150 per month. Alice has a car payment of $300 per month. Ted and Alice have been looking at homes in the neighborhood that is most convenient for them. They believe their property tax bill is likely to be about $3,000 per year and expect that their homeowners insurance will run $600 per year. They expect to have to pay $150 monthly in homeowners association dues. Ted and Alice are considering either a conventional or an FHA loan. Ted has worked as a mechanic for the past 8 years. Several months ago, Ted resigned from his previous employment and took a job as a mechanic with a different company at a higher pay. Ted's regular salary is $40,000. Over the past five years, he has averaged $3,000 in overtime and/or bonus income, although that has varied greatly. Some years there has been no extra income, one year it was as high as $6,000. His new employer has the same overtime/bonus policies as his previous employer. Ted currently has a total of $20,000 in his savings and checking account, which includes a recent deposit in his savings account of $8,000. Alice has worked for a business software company for the past seven years. Her income has grown steadily over the years, most recently reaching $50,000 last year. About 50% of her income is in the form of commissions, which has accounted for almost all of her increased earnings. Alice has a total of $15,000 in her checking and savings accounts. Here are Ted's monthly expenses: Ted has several credit cards, but only uses one on any regular basis. The account requires a minimum payment each month of $25, but Ted almost always pays off the entire balance each month and hasn't had a financed balance in over a year. Ted's car payment is $250 per month. Alice has only one credit card, which currently has a financed balance of $3,000. Her minimum payment is $50 per month. Alice has student loan payments of $150 per month. Alice has a car payment of $300 per month. Ted and Alice have been looking at homes in the neighborhood that is most convenient for them. They believe their property tax bill is likely to be about $3,000 per year and expect that their homeowners insurance will run $600 per year. They expect to have to pay $150 monthly in homeowners association dues. Ted and Alice are considering either a conventional or an FHA loan