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