Real Estate Math
A Kansas homebuyer is qualifying for a mortgage. Their gross income is $85,000 per year. At a 28% front-end DTI limit, what is their maximum allowable monthly housing payment (PITI)?
A$1,750
B$1,983✓ Correct
C$2,125
D$2,250
Explanation
Monthly gross income = $85,000 ÷ 12 = $7,083. Max PITI = $7,083 × 0.28 = $1,983. To solve this, multiply the relevant values: $85,000 at 28%.. The correct answer is $1,983.. This is a common calculation on the Kansas real estate exam.
Related Kansas Real Estate Math Questions
- A Kansas commercial building sells for $1,200,000. The cap rate is 7.5%. What is the NOI?
- A Kansas home sells for $310,000. The seller pays off a mortgage of $195,000 and a second mortgage of $28,000. Closing costs are $12,000. What are the seller's net proceeds?
- A Kansas salesperson has a goal of earning $72,000 this year. The average commission per transaction is $4,800. How many transactions does the salesperson need?
- A Kansas listing agent earns 60% of the total 6% commission on a $180,000 sale. What does the listing agent earn?
- A Kansas lot is described as the NW 1/4 of the SW 1/4 of a section. How many acres does it contain?
- A Kansas buyer closes on April 15. Annual taxes of $2,400 are paid in arrears. How much does the seller owe at closing (seller's days: Jan 1 – Apr 15 = 105 days)?
- A rectangular lot measures 150 feet by 200 feet. How many acres is this lot? (1 acre = 43,560 sq ft)
- A Wichita property manager collects $14,500 in monthly rents. Their management fee is 9%. What is the monthly fee?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →