Daniel decided it was a good time to enter the real estate market. He currently has gross monthly income of $8,000 per month and an outstanding car loan with payment of $500 per month. He viewed a few properties and is considering a condominium with the following operating costs: (i) condo fees of $350 per month; (ii) utilities of $300 per month; and (iii) ANNUAL property taxes of $1,200 per year.

The bank will use a Gross Debt Service Ratio of 32% and a Total Debt Service Ratio of 44% to determine the maximum monthly mortgage payment Daniel can afford.

What is the maximum monthly mortgage payment Daniel can afford? (You must show all of your work.)