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Your bank is reviewing a mortgage application. The client earns $45,000 per year and has applied for a $120,000 30-year mortgage at 8.5% interest, paid

Your bank is reviewing a mortgage application. The client earns $45,000 per year and has applied for a $120,000 30-year mortgage at 8.5% interest, paid monthly. Property taxes on the house are expected to be $1,750 per year. If the bank requires a gross debt service of no more than 30%, should you proceed with the mortgage?

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