Real Estate Math
A buyer's monthly gross income is $6,000. Their monthly debts include a $400 car payment and a $100 student loan payment. The proposed PITI is $1,500. What is the buyer's total debt-to-income (back-end) ratio?
A25%
B33.33%✓ Correct
C40%
D16.67%
Explanation
Total monthly debts = $1,500 (PITI) + $400 (car) + $100 (student loan) = $2,000. DTI = $2,000 ÷ $6,000 = 0.3333 = 33.33%.
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