THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Allison Gunther, a prospective homebuyer, has applied for a mortgage loan to finance the purchase of a townhouse listed at $276,000. The market value of the townhouse is $275,000 and the lender has assigned a $271,000 lending value to it. The lender demands a 32% gross debt service ratio and an 80% loan-tovalue ratio. The purchaser's annual income is $58,000, property taxes are $1,700 per annum and, if approved, the loan is to be repaid with monthly payments over 25 years. The interest rate is j2=5%. 6. Calculate the maximum loan allowable under the lender's loan-to-value criterion. (1) $228,800 (2) $216,800 (3) $220,000 (4) $203,250 7. Assume that the monthly payments on Ms. Gunther's loan are agreed to be $1,200. Calculate the minimum level of borrower's income necessary to support these monthly payments, if the lender's gross debt service ratio is 32%. (1) $58,000.00 (2) $54,965.50 (3) $50,312.50 (4) $53,992.40