Given the information in *****QUESTION BELOW****** and based on the preferable offer, how much money would the bank expect you to make if annual taxes are 2% of the house price and annual hazard insurance is 0.3% of the price. Furthermore you have $2,000 in monthly revolving loan payments, $750 per month for car payments and $1,000 a month for credit card payments. The bank uses a front ratio of 28% and a back ratio of 43%.

Please provide explanations and calculations. Excel formulas, please! Thank you kindly in advance.

(The question above is in reference to the following: You are looking to buy a $1 million home and you would like to put $100,000 down and borrow the rest. You have two offers from competing banks. The first bank offers you a $900,000 first mortgage, with a rate of 3.75%, 30 year amortization and 2% origination fee. The second offer consists of an $800,000 mortgage at 3%, 30 year amortization, with 1% origination fee and a home equity loan of $100,000 at a rate of 7.5%, 30 year amortization, 2% origination fee. Which offer would you take?)