1. You are being evaluated for a fully amortizing $375,000 loan with a fixed interest rate of 3.5% and a 30 year term. Additional housing related costs total $350 per month. Further assume your annual salary is $85,000 and the banks maximum Payment to Income ratio is 30%. Compute your Payment to Income ratio and state whether the loan would be approved or not (using only this ratio as the determining factor).
   1. 31.5%, No
   2. 36.5%, Yes
   3. 28.7%, Yes
   4. 0.29%, Yes