Jane Doe earns $ 30,000 per year and has applied for an $ 80,000, 30-year mortgage at

Question:

Jane Doe earns $ 30,000 per year and has applied for an $ 80,000, 30-year mortgage at 8 percent interest, paid monthly. Property taxes on the house are expected to be $ 1,200 per year. If her bank requires a gross debt service ratio of no more than 30 percent, will Jane be able to obtain the mortgage?