Finance
A Florida borrower's monthly gross income is $6,000. The lender's conventional loan guideline allows a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?
A$1,400
B$1,500
C$1,680✓ Correct
D$2,100
Explanation
$6,000 × 28% = $1,680. The housing expense (front-end) ratio caps the monthly payment for principal, interest, taxes, and insurance (PITI) at 28% of gross monthly income.
Related Florida Finance Questions
- A Florida property qualifies for a 1031 tax-deferred exchange. The investor must identify replacement property within how many days of selling the relinquished property?
- A Florida mortgage that allows the borrower to pay interest only for an initial period, then requires full amortization, is called a(n):
- A Florida 'reverse mortgage' is primarily designed for:
- Florida's documentary stamp tax on mortgages (intangible tax) is calculated based on the:
- A Florida homebuyer uses a 'piggyback' loan (80-10-10 structure). This means:
- A Florida lender charges 2 discount points on a $250,000 mortgage. What is the dollar cost of the points?
- In Florida, a 'wraparound mortgage' (all-inclusive trust deed) is one where:
- A 'satisfaction of mortgage' in Florida is also called a:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →