Now that you are a successfully employed college graduate, you have decided to buy a condo in South Norwalk The asking price is $199.000, but you believe that you will be able to contract to buy it for $180,000. You have $25,000 saved up - your game plan is to use $15,000 as a down payment (meaning you will need a $165,000 mortgage loan). $5,000 for closing costs, and $5,000 for some IKEA furnishings. Taxes, common charges and insurance on the condo will cost $440 a month. Since your LTV ratio would be greater than 80%, you will also need to pay 550 a month for mortgage Insurance You have looked at different bank mortgage rates, and see that there is a 30 year fixed rate loan with no points available at 4 % interest rate. This would make your monthly loan payment on the $165,000 loan equal to 5787 per month You currently make 560.000 a year. Your only other long term debts are $300 a month student loan and $280 a month car lease. 1. What is your front end (mortgage debt) and back end (total debt) ratio? Use 28% and 36%. Show how you arrived at these ratios. 2. Does your income qualify for a conventional loan to buy this condo? Why or why not