annual salary is $120,000 and have enough of a down payment for a 20% down-payment on a home. Your only long-term debt is a Range Rover that costs $1,000 per month. The house you want to buy has Taxes and Insurance costs of $1,000 per month. Using the ratios of 28/36 for loan underwriting by your lender:

1- How much principal and interest payment/month can you afford for your mortgage?

2- What is the LTV %?

3- Do you think PMI would be needed for this loan and why? Please show your work!