Finance
A Delaware borrower's gross monthly income is $5,000. Using a 28% front-end ratio, what is the maximum monthly PITI payment the borrower qualifies for?
A$1,200
B$1,400✓ Correct
C$1,600
D$2,000
Explanation
Maximum PITI = Gross Monthly Income × Front-End Ratio = $5,000 × 0.28 = $1,400. To solve this, multiply the relevant values: $5,000 at 28%.. The correct answer is $1,400.. This is a common calculation on the Delaware real estate exam.
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