2. Your annual salary is $110,000. A lender's qualification ratio for loan origination is 27% of your monthly income. The rate for a 30-year FRM mortgage is 7%. a. What is the maximum monthly mortgage payment the lender is willing to lend you? (5 points) b. What is the maximum loan size you qualify for? ( 10 points) c. Assuming you can come up with the 10% down payment, what is the most expensive house you can purchase? (15 points) d. How would your answer change if rates increased to 8% ? (10 points) 2. Your annual salary is $110,000. A lender's qualification ratio for loan origination is 27% of your monthly income. The rate for a 30-year FRM mortgage is 7%. a. What is the maximum monthly mortgage payment the lender is willing to lend you? (5 points) b. What is the maximum loan size you qualify for? ( 10 points) c. Assuming you can come up with the 10% down payment, what is the most expensive house you can purchase? (15 points) d. How would your answer change if rates increased to 8% ? (10 points)