Real Estate Math
A buyer's gross monthly income is $6,500. The lender allows a back-end ratio of 43%. The buyer's monthly car payment is $350, and student loans cost $200/month. What is the maximum monthly mortgage payment (PITI) allowed?
A$2,795
B$2,245✓ Correct
C$2,645
D$2,350
Explanation
Maximum total debt = $6,500 × 43% = $2,795. Existing debts = $350 + $200 = $550. Maximum PITI = $2,795 − $550 = $2,245.
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