Real Estate Math
A buyer has a monthly gross income of $9,000. The lender's back-end DTI limit is 43%. The buyer's monthly non-housing debts are $800. What is the maximum total monthly debt the buyer can have?
A$3,070✓ Correct
B$3,870
C$3,250
D$4,250
Explanation
Max total monthly debt = $9,000 × 43% = $3,870. Max housing payment = $3,870 − $800 (existing debts) = $3,070.
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