Real Estate Math
A buyer's gross monthly income is $7,500. The lender allows a housing expense ratio of 28%. With taxes of $250/month and insurance of $100/month, what is the maximum monthly mortgage P&I payment?
A$1,750✓ Correct
B$2,100
C$1,488
D$1,850
Explanation
Maximum PITI = $7,500 × 28% = $2,100. Maximum P&I = $2,100 − $250 (taxes) − $100 (insurance) = $1,750.
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