me that Gifty Mensah wants to buy a property at Lakeside Estate. The property is a threeoom apartment going for Ghe 450,000 . The lender requires Gifty to make a down payment of 50,000 . The interest on the loan is 20% per annum. The loan is for a 20 -year period. The er requires payments on the mortgage to be made on a monthly basis. Gifty earns Ghe 13,000 nath before tax from her regular employment. Find the monthly payment on the mortgage (2 marks) Find the payment-to-income ratio. Will Gifty qualify for this loan if the lender required a PTI of 40% ? (2 marks) Find the loan-to-value ratio. Will Gifty qualify for this loan if the lender requires a PTI of 90% ? (2 marks) FICO score of 400, what does this indicate about the credit quality of Gifty? Is Gifty has a FICO score of 400 , what does this indicate about the credit quality of Gif (3e marks) Construct an amortization schedule for the first six months of the loan. What do you notice? (12 marks) Gifty makes a payment of GHC 26,795.30 at the end of month 6 . What will Assume that Gifty makes a payment of GHC 26,795.30 at the end of month 6 . What will payment? (4marks) Now let's assume that instead of a fixed rate loan, the loan was an ARM which resets every 12 months. Now assume that the new rate on the loan is now 25%. What will be the new monthly payment on the loan for the next 12 months? (2 marks) What will be the closing balance on this loan at the end of month 120 ? (2 marks) What will be the principal and interest repayment in month 120 ? (2 months) Discuss some of the following risks involved in mortgage lending and how a bank may mitigate them; a. Prepayment risk b. Interest rate risk c. Credit risk (6 marks) In mortgage lending, lenders are exposed to pipeline risk which is made up of fall out risk and price risk. What is the difference between fall out risk and pipe line risk