Finance
An Iowa borrower's monthly gross income is $6,500. Their proposed PITI payment is $1,690. What is the front-end (housing) debt-to-income ratio?
A24%
B26%✓ Correct
C28%
D30%
Explanation
Front-end DTI = PITI ÷ Gross monthly income = $1,690 ÷ $6,500 ≈ 0.26 = 26%.
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