Real Estate Math
A buyer qualifies for a maximum monthly PITI payment of $2,200. Property taxes are $300/month and homeowner's insurance is $100/month. At 7% for 30 years, the monthly principal and interest factor is $6.65 per $1,000 borrowed. What is the maximum loan amount?
A$270,677✓ Correct
B$226,415
C$330,827
D$255,639
Explanation
Available for P&I = $2,200 − $300 − $100 = $1,800. Max loan = ($1,800 ÷ $6.65) × $1,000 = 270.68 × $1,000 = $270,677 (rounded).
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