You are interning this summer at a mortgage bank. Your boss has asked you to spend some time in the underwriting department. You are asked to review a loan application for a potential borrower. The applicant has provided the following information. Income $80,000 per year in W2 wages $5,500 per year bonus $2,500 per year rental income Employment Computer programmer for Gryphon Technologies 4 years in current position Credit Score 740 Debt Obligations Student Loan: $485 per month Car Loan: $350 per month Investment Property Mortgage: $1,250 per month Assets $50,000 in money market account $22,000 in 401k $25,000 gift from parents Applicant is under contract to purchase a home for $350,000. The annual taxes are $4,500. The insurance cost is $1,200 per year. Closing costs are estimated at 3% of purchase price. The applicant is seeking a fixed-rate 30 year conventional loan at 80% LTV. In order to approve the loan, the mortgage bank requires a Debt-to-Income Ratio of 43% or less and a Housing Expense Ratio of 28% or less. The bank is quoting an interest rate of 3.25% for applicants with credit scores less than 720, and 3.0% for applicants with credit scores above 720. 1. What is the expected monthly payment to purchase this home? You are interning this summer at a mortgage bank. Your boss has asked you to spend some time in the underwriting department. You are asked to review a loan application for a potential borrower. The applicant has provided the following information. Income $80,000 per year in W2 wages $5,500 per year bonus $2,500 per year rental income Employment Computer programmer for Gryphon Technologies 4 years in current position Credit Score 740 Debt Obligations Student Loan: $485 per month Car Loan: $350 per month Investment Property Mortgage: $1,250 per month Assets $50,000 in money market account $22,000 in 401k $25,000 gift from parents Applicant is under contract to purchase a home for $350,000. The annual taxes are $4,500. The insurance cost is $1,200 per year. Closing costs are estimated at 3% of purchase price. The applicant is seeking a fixed-rate 30 year conventional loan at 80% LTV. In order to approve the loan, the mortgage bank requires a Debt-to-Income Ratio of 43% or less and a Housing Expense Ratio of 28% or less. The bank is quoting an interest rate of 3.25% for applicants with credit scores less than 720, and 3.0% for applicants with credit scores above 720. 1. What is the expected monthly payment to purchase this home