Real Estate Math
A Florida borrower has a monthly gross income of $6,500. Following conventional lending's 28% front-end ratio, what is the maximum PITI payment?
A$1,430
B$1,690
C$1,820✓ Correct
D$1,950
Explanation
Maximum PITI = $6,500 × 28% = $1,820. The front-end ratio limits housing expenses (principal, interest, taxes, insurance) to 28% of gross monthly income for conventional loans.
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