Question 4(18 marks) (a) Alex bought a house five years ago for $160,000. At that time he got a mortgage loan of $140,000 from his bank. The house is now worth $184,000. Given that once his equity has increased to 22% of the current market value of the house, he can request that Private Mortgage Insurance (PMI) be cancelled. What is the mortgage balance at which the termination of his PMI policy can be triggered? (5 marks) (b) Jordan earns an annual salary of $60,000. He is considering buying a house. His lender uses 30% of monthly gross income as a guideline for the maximum PITI (principal repayment, interest, taxes, and insurance). Assume that monthly property taxes and insurance amount to be $540. He can get a 25-year mortgage with annual interest rate of 6%. If he would like to finance 75% of the house, what is the home purchase price that he can afford? (13 marks)