Real Estate Math
A borrower earns $95,000 annually. Lender requires a maximum back-end ratio of 43%. The borrower has monthly car and student loan payments totaling $800. What is the maximum monthly mortgage payment (PITI)?
A$2,604✓ Correct
B$3,404
C$2,805
D$1,804
Explanation
Gross monthly income = $95,000 ÷ 12 = $7,916.67. Max total debt = $7,916.67 × 43% = $3,404.17. Max PITI = $3,404.17 − $800 = $2,604.17 ≈ $2,604.
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