4. A property is listed for $399,999 but the market value, as estimated in a recent appraisal, is $395,000. The property's lending value is estimated to be $390,000. Jay and Joan purchase the home for $396,000, subject to mortgage of $273,000. Assuming that the loan-to-value ratio is the binding constraint, what loan-to-value ratio is applied by the lender with whom Jay and Joan negotiated the mortgage? (1) 67.5% (2) 70% (3) 72% (4) 75% A lender is reviewing Mr. Jones' loan application. Mr. Jones has an annual income of $70,000, first mortgage payments of $1,350 per month, truck payments of $530 per month, and annual property taxes of $1,600. Which one of the following gives the correct gross debt service ratio (GDSR) and total debt service ratio (TDSR) for Mr. Jones? (1) GDSR =25.4%; TDSR =34.5% (2) GDSR=29.4%;TDSR=35.3% (3) GDSR=29.4%;TDSR=34.5% (4) GDSR =34.5%; TDSR =29.4%