Real Estate Math (alternative)
A Maryland buyer's monthly PITI payment is $2,200. Their gross monthly income is $7,000. Their housing expense ratio (front-end DTI) is approximately:
A18%
B31%✓ Correct
C47%
D52%
Explanation
Housing expense ratio = Monthly PITI ÷ Gross monthly income = $2,200 ÷ $7,000 = 0.314 ≈ 31%. Using the values given ($2,200, $7,000), apply the appropriate formula.. The correct answer is 31%.. This is a common calculation on the Maryland real estate exam.
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