The Xiomaras have an adjusted gross income of $137,865. They are looking at a new house that would have a monthly mortgage payment of $1,687. Their annual property taxes would be $7,550 and their semi-annual homeowner's premium would be $835.
a. Find their front-end ratio to the nearest percent.
b. Assume that their credit rating is good. Based on the front-end ratio, would the bank offer them a loan? Explain.
c. The Xiomaras have a $344 per month car loan, and their average monthly credit card bill is $420. Compute the back-end ratio to the nearest percent. d. Based on the back-end ratio, would the bank offer them a loan? Explain.