You are a loan officer at Ghana Home Loans. Two couples have come to your office to obtain a mortgage loan so that they can move to their own home. The Agbosus want to move in to a house at Dodowa. The Agyeis want a home at the QUESTION ONE (30 Marks) Lakeside Estates. Elikem Agbosu has a monthly salary of GHS 15,000. Based on your estimations Elikem will have to pay a fixed annual interest rate of 25%. Elikem has requested for a loan for a 30-year period. The cost of the property is GHS 200,000. The Agbosus have made a down payment of GHS 40,000 and want to borrow the remainder Fred Agyei has an annual salary of GHS 144,000. Fred has to pay a fixed annual interest rate of 30%. The tenor of this loan is also 30 years. Your calculations indicate a loan monthly repayment of GHS 9,001.24 for the loan to be fully amortized. The Agyeis will have to make a deposit of GHS 40,000 in addition to the loan to pay for the full cost of the house. Ghana Home Loan's lending policies indicate that the monthly Payment to Income (PTI) ratio on any loan should not exceed 60%. The Loan to Value (LTV) ratio on the other hand should not exceed 80%. Your supervisor has requested that you write a report (marks will be awarded for using this format) on the following matters; a) Whether these two couples should be given a mortgage loan. You may base your evaluation on the Payment to Income ratio (PTI) and Loan to Value (LTV) ratio. (12 marks) b) The Agbosus are thinking about a 15 year loan instead of a 30 year loan. Why may a 15 year loan be desirable by both Ghana Home Loans and true Agbosus? (4 marks) c) The implications of a fixed rate loan and a floating rate loan for Ghame Home Loans and its borrowers in different interest rate environments. (3 marks) d) The risks associated with mortgage lending and how these may be mitigatet. (9 marks)