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  3. harvey and esmeralda's combined gross income is $7

Harvey and Esmeralda's combined gross income is $75,000, and their monthly consumer debt is $558....

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Finance

Harvey and Esmeralda's combined gross income is $75,000, and their monthly consumer debt is $558. They wish to purchase a new home valued at $185,000 but need to know if they qualify for a mortgage of $145,000 amortized over 20 years. The mortgage interest rate on a 5-year mortgage term is 5.75%. Property taxes are $1,800/year and the heating cost for the home is $1,200/year. What is their monthly mortgage payment?

Select one:

a. $942.60

b. $924.60

c. $1,018.02

d. None of the above

e. $1,012.43

And what is Harvey and Esmeralda's total debt service ratio (TDS)?

Select one:

a. 22.22%

b. 32.32%

c. 20.20%

d. 29.13%

e. 33.61%

The answers are bold. How to calculate it? Thank you!

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