Finance
A Connecticut borrower's monthly gross income is $8,500. The proposed total monthly housing payment (PITI) is $2,295. What is the front-end ratio?
A21%
B25%
C27%✓ Correct
D31%
Explanation
Front-end ratio = PITI ÷ Gross Monthly Income = $2,295 ÷ $8,500 = 0.27 = 27%. Using the values given ($8,500, $2,295), apply the appropriate formula.. The correct answer is 27%.. This is a common calculation on the Connecticut real estate exam.
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