Finance
A Colorado borrower's monthly gross income is $6,000. Their total monthly debt obligations including PITI are $2,400. What is their total DTI ratio?
A30%
B40%✓ Correct
C43%
D50%
Explanation
Total DTI = Total Monthly Debt / Gross Monthly Income = $2,400 / $6,000 = 0.40 = 40%. Using the values given ($6,000, $2,400), apply the appropriate formula.. The correct answer is 40%.. This is a common calculation on the Colorado real estate exam.
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