Finance
A Kentucky borrower's gross monthly income is $6,000. Their proposed PITI (principal, interest, taxes, insurance) payment is $1,500. What is the front-end DTI ratio?
A20%
B25%✓ Correct
C28%
D33%
Explanation
Front-end DTI = PITI ÷ Gross Monthly Income = $1,500 ÷ $6,000 = 25%. Using the values given ($6,000, $1,500), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Kentucky real estate exam.
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