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Can Becky and Alex afford this home using the installment debt loan criterion? Next week; your friends Becky and Alex want to apply to the Fith State Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $125,000. Given your knowledge of persional finance, they've asked fo that follows. To assist in the preparation of the worksheet, Becky and Alex also collected the following informution: - Their financial records report a combined gross before-tax annual income of $105,000 and current (pre-mortgage) instaliment loan, credit card, and car loan debt of $1,531 per month. - Their property taxes and homeowner's insurance policy are expected to cost $2,813 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 $32,500 that can be used to satisfy the home's down payment and closing costs. - The lender requires a minimum 20% down payment, and instaliment loan affordabilty ratios that range from a minimum of 33% to a maximum of 38%. Use either your financial calculator or the maximum affordable mortgage bas formula to complete the following home affordability morksheet. (Note: When completing the form, round each dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent doular amounts. Mso, some values calculated or used in the upper section of the table moy also be used in the lower seceion. Round your percentage ansiner. to two decimal places.) Given these resuits, which statement regarding Becky and Alex's mortgage qualification process and the purchase of their $125,000 target home is true? Becky and Alex do not qualify to purchase their $125,000 target home according to the Installment Debt Affordabilty Worksheet criterion. Becky and Alex qualify to purchase their $125,000 target home according to the Installment Debt Affordability Worksheet criterion

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