Real Estate Math

A Louisiana buyer is approved for a maximum DTI of 43%. Their gross monthly income is $6,000. Their existing monthly debt payments are $650. What is the maximum additional monthly mortgage payment they can qualify for?

A$1,930✓ Correct
B$2,580
C$1,580
D$2,130

Explanation

Maximum total debt = $6,000 × 43% = $2,580. Maximum additional mortgage = $2,580 − $650 = $1,930. To solve this, multiply the relevant values: $6,000 and $650 at 43%.. The correct answer is $1,930.. This is a common calculation on the Louisiana real estate exam.

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