The Smiths want to qualify for a mortgage loan with a large local bank. The bank mortgage loan officer says that they must have a Housing Ratio #1 of less than or equal to 28% for the loan to made. Prospective Loan Information: Principal and Interest (annual) = $22,000. Property Taxes (annual) = $2,500. Homeowners insurance (annual) = $1100. Monthly gross pay for the Smiths = $8200 Given the Housing Ratio #1 of the Smiths, will they qualify for the mortgage loan? Show all work

The Smithsmust also have a Housing Ratio #2 of equal or less than 36%. Using their gross pay data from above as well as their debt payments (i.e., Monthly car loan payments $300, student loan payments of $250, and monthly credit card payments of $120), what is their Housing Ratio #2? Will they qualify?