Need help on this so I know what I am doing on the future ones. Will thumbs up

Can Sean and Yvette afford this home using the monthly income loan criterion? Next week, your friends Sean and Yvette want to apply to the Fifth State Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Sean and Yvette also collected the following information: Their financial records report a combined gross before-tax annual income of $85,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,240 per month. Their property taxes and homeowner's insurance policy are expected to cost $3,488 per year. Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. They have accumulated savings of $38,500 that can be used to satisfy the home's down payment and closing costs. The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30%. Use either the table of monthly payments (necessary to repay a $10,000 loan), your financial calculator, or the maximum affordable mortgage loan formula to complete the following home affordability worksheet. (Note: When completing the form, round each dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of the table may also be used in the lower section.) Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Loan Maturity Interest Rate (%) 10 Years 15 Years 20 Years 25 Years 30 Years 5.0 106.0655 79.0794 65.9956 58.4590 53.6822 5.5 108.5263 81.7083 68.7887 61.4087 56.7789 6.0 111.0205 84.3857 71.6431 64.4301 59.9551 6.5 113.5480 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 75 118 7018 92 7012 8 5593 73 8991 69 9215 Loan Maturity Interest Rate (%) 10 Years 15 Years 20 Years 25 Years 30 Years 5.0 106.0655 79.0794 65.9956 58.4590 53.6822 5.5 108.5263 81.7083 68.7887 61.4087 56.7789 6.0 111.0205 84.3857 71.6431 64.4301 59.9551 6.5 113.5480 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 75 118 701R an 5593 73 8991 69 9215 Home Affordability Worksheet Based on Monthly Income High Value Low Value Amount 1. Annual income 2. Monthly income 3. Lender's monthly income affordability ratio 30% 25% 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 7.5% 8. Planned loan maturity (years) 15 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income Given these results, which statement regarding Sean and Yvette's mortgage qualification process and the purchase of their $155,000 target home is true? Sean and Yvette do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Sean and Yvette qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Can Sean and Yvette afford this home using the monthly income loan criterion? Next week, your friends Sean and Yvette want to apply to the Fifth State Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Sean and Yvette also collected the following information: Their financial records report a combined gross before-tax annual income of $85,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,240 per month. Their property taxes and homeowner's insurance policy are expected to cost $3,488 per year. Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. They have accumulated savings of $38,500 that can be used to satisfy the home's down payment and closing costs. The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30%. Use either the table of monthly payments (necessary to repay a $10,000 loan), your financial calculator, or the maximum affordable mortgage loan formula to complete the following home affordability worksheet. (Note: When completing the form, round each dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of the table may also be used in the lower section.) Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Loan Maturity Interest Rate (%) 10 Years 15 Years 20 Years 25 Years 30 Years 5.0 106.0655 79.0794 65.9956 58.4590 53.6822 5.5 108.5263 81.7083 68.7887 61.4087 56.7789 6.0 111.0205 84.3857 71.6431 64.4301 59.9551 6.5 113.5480 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 75 118 7018 92 7012 8 5593 73 8991 69 9215 Loan Maturity Interest Rate (%) 10 Years 15 Years 20 Years 25 Years 30 Years 5.0 106.0655 79.0794 65.9956 58.4590 53.6822 5.5 108.5263 81.7083 68.7887 61.4087 56.7789 6.0 111.0205 84.3857 71.6431 64.4301 59.9551 6.5 113.5480 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 75 118 701R an 5593 73 8991 69 9215 Home Affordability Worksheet Based on Monthly Income High Value Low Value Amount 1. Annual income 2. Monthly income 3. Lender's monthly income affordability ratio 30% 25% 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 7.5% 8. Planned loan maturity (years) 15 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income Given these results, which statement regarding Sean and Yvette's mortgage qualification process and the purchase of their $155,000 target home is true? Sean and Yvette do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Sean and Yvette qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion