You are ready to buy a house and you have $50,000 for a down payment and closing costs. Closing costs are estimated to be 2.5% of the loan value.You have an annual salary of $200,000. The bank is willing to allow your housing costs - mortgage, property tax and homeowners insurance to be equal to 28% of your monthly income. You have estimated that property tax will be $1,000/month and homeowner's insurance will be $100/month. The interest rate on the loan is 3.4% per year with monthly compounding for a 30-year fixed rate loan.

1. How much money will the bank loan you?
2. How much can you offer for the house?
3. Show a loan amortization table in Excel and submit the spreadsheet. This should be done with monthly payments.

(Please show all work in excel with accompanying formulas)