Mortgage affordability. Dhuha and Omar have an annual income of $183,408 and want to buy a...

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Mortgage affordability. Dhuha and Omar have an annual income of$183,408 and want to buy a home. Currently, mortgage rates are 4.25percent. They want to take out a mortgage for 30 years. Real estatetaxes are estimated to be $9,764 per year for homes similar to whatthey would like to buy, and homeowner’s insurance would be about$2,504 per year.
Using a 28 percent front end ratio, what are the total monthlyexpenditures for which they would qualify? (5 points)
Using a 36 percent back end ratio, what monthly mortgagepayment (including taxes and insurance) could they afford giventhat they have an automobile loan payment of $479, a student loanpayment of $280, and credit card payments of $364? (5 points)

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Mortgage affordability. Dhuha and Omar have an annual income of$183,408 and want to buy a home. Currently, mortgage rates are 4.25percent. They want to take out a mortgage for 30 years. Real estatetaxes are estimated to be $9,764 per year for homes similar to whatthey would like to buy, and homeowner’s insurance would be about$2,504 per year.Using a 28 percent front end ratio, what are the total monthlyexpenditures for which they would qualify? (5 points)Using a 36 percent back end ratio, what monthly mortgagepayment (including taxes and insurance) could they afford giventhat they have an automobile loan payment of $479, a student loanpayment of $280, and credit card payments of $364? (5 points)