Real Estate Math
A borrower's annual gross income is $84,000. If the lender uses a maximum back-end DTI ratio of 43%, and the borrower has $650/month in existing debt payments, what is the maximum monthly mortgage payment (PITI)?
A$2,370✓ Correct
B$2,680
C$3,570
D$2,380
Explanation
Maximum total monthly debt = $84,000 ÷ 12 × 43% = $7,000 × 0.43 = $3,010. Maximum PITI = $3,010 − $650 = $2,360. The
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