35. Devin and Merri are getting prequalified. Devin earns $1.300 a month and Merri earns $1,000 a month. Merri receives child support of $700 a month from an ex-husband. Devin gets $150 annual interest from some bonds he owns. Based on the price range they are thinking about. property taxes are $1.150 per year and insurance is $510 per year. Based on a front-end ratio of 29%, what is the maximum mortgage payment they qualify for?

36. Devin has a car payment of $120 and a credit card payment of $25. Merri has a car payment of $110 and a credit card payment of $10. Based on a back-end ratio of 41%, what is the maximum mortgage payment they qualify for?

37. What is their maximum monthly mortgage payment?

38. They buy a home for $130,000 and get a 30-year $115,000 mortgage loan at 4.5% interest, with a monthly payment (PI) of $582.69. The lender requires an escrow account. Property taxes on the home they end up buying are $1,144 per year and insurance is $510 a year. Calculate. their total (PITI) monthly payment.

39. Devin and Merri sign the loan documents on March 23 and are required to deposit $340 into the escrow account at that time. Their first payment is due May 1. The lender pays property taxes of $1,144 from their escrow account on November 22. Calculate their escrow balance at the end of the calendar year.

40. Calculate their mortgage balance after their first monthly payment.

41. Two years after buying the home, they borrow $18,000 on a home-equity loan to upgrade the kitchen. Four years after buying the home, their first mortgage balance is paid down to $107,052 (rounded), and their home equity loan has a balance of $15,200. They get an appraisal, showing the home is worth $140,000. What is their equity in the home?

42. Assume that a year later, Devin loses his job and they get behind on their mortgage payments. The balance on the first mortgage (including court costs and attorney fees) is $111,100 and the balance on the second mortgage (home-equity loan) is $17,500. The home is sold at a foreclosure sale for $125,000. Who gets the money from the sale?

43. Assume, instead, that Devin and Merri weather the storm and bring their payments current. During the next several years, home values increase dramatically, and they sell their home for $170,000. They owe $102,509 on the first mortgage and $4,000 on the second. They pay a 6% real estate commission and other expenses of $2,300. What amount will they receive from the sale?