Real Estate Math
A borrower's monthly gross income is $8,500. The lender uses a 43% maximum DTI. The borrower has $850 in existing monthly debt payments. What is the maximum allowable monthly mortgage payment?
A$3,655
B$2,805✓ Correct
C$4,505
D$1,955
Explanation
Maximum total monthly debt = $8,500 × 43% = $3,655. Maximum mortgage payment = $3,655 − $850 (existing debts) = $2,805.
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