2. Financing decisions (6 questions,4 points eachl Joe King has an annual income of $240,000. Joe is buying a house that is selling for $400,000 in a very desirable area, sought after by buyers. He applies for a loan at the bank and is approved for fully amortizing 30-year FRM at an annual rate of 3.40%, with monthly payments, compounded monthly. The bank will not lend more than 80% LTV. The appraisal indicates the house is worth $375,000. Joe does not want PM a) What is the biggest mortgage Joe can get and what will his down payment be, assuming he does not want PMI? b) What will his monthly payment be? 2. Financing decisions (6 questions,4 points eachl Joe King has an annual income of $240,000. Joe is buying a house that is selling for $400,000 in a very desirable area, sought after by buyers. He applies for a loan at the bank and is approved for fully amortizing 30-year FRM at an annual rate of 3.40%, with monthly payments, compounded monthly. The bank will not lend more than 80% LTV. The appraisal indicates the house is worth $375,000. Joe does not want PM a) What is the biggest mortgage Joe can get and what will his down payment be, assuming he does not want PMI? b) What will his monthly payment be