Ann wants a mortgage to buy a house. Ann gives the following information to the bank:

Income: $240k/year or 20k/month

Average monthly debt: $2k

Estimated monthly Taxes + Insurance: $700

Down-payment: $50k saved

-Anns down-payment will be $50k, she will take out a mortgage for the remainder

Ann qualifies for a 30 year FA-CPM-FRM (monthly payments & monthly compounding) with:

Annual interest rate: 4%

Income test: (28%/36%)

Collateral test: LTV95%B019*DP0

Closing costs + buy-down points: $5,000 + 1.75% of the balance at origination.

1.6: based the LTV test and Anns $50k down-payment, what is the biggest loan Ann can get?

1.7: based on the income & collateral tests, what is the biggest loan Ann can get?