Loan: By law, lenders cannot approve mortgages that would require more than 35% of your monthly income. However, the majority of lenders will loan you only 28% of your monthly income. The pre-tax monthly salary is $4,700. Using 28% of the monthly pre-tax salary. Calculate the largest loan that you can apply for from your lender to apply towards this new home, understanding that, again, most lenders will only loan you up to 80% of the cost of the home. To standardize this part of the assignment, lets assume that you take out a 30 year mortgage and that your APR is a fixed 5.5%. Create an Excel sheet** for this until your balance is zero. NOW, in the last Excel sheet**, create a column for an extra payment to knock down the principal quicker.