FinanceIntermediateDelaware Exam
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$1,400Correct
C$1,600
D$2,000
Why $1,400 Is Correct
Answer B: $1,400
Maximum PITI = Gross Monthly Income × Front-End Ratio = $5,000 × 0.28 = $1,400.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Related Delaware Finance Questions
- What is 'mortgage servicing' and how does it affect Delaware homeowners?Finance
- What is the 'back-end ratio' (total debt ratio) in Delaware mortgage qualification?Finance
- What is 'seller financing' or 'owner financing' in Delaware?Finance
- A 'balloon mortgage' in Delaware requires the borrower to:Finance
- What does PITI stand for in mortgage calculations?Finance
- What is the function of Ginnie Mae (Government National Mortgage Association) in Delaware mortgage markets?Finance
- What is 'negative amortization' on a mortgage loan?Finance
- What is a 'Freddie Mac' (Federal Home Loan Mortgage Corporation)?Finance
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →