Finance (alternative)
In Maryland, a buyer's PITI of $2,400 per month on a gross monthly income of $7,500 results in a front-end ratio of:
A22%
B26%✓ Correct
C29%
D34%
Explanation
Front-end ratio = PITI ÷ Gross Monthly Income = $2,400 ÷ $7,500 = 0.32 = 32%. Using the values given ($2,400, $7,500), apply the appropriate formula.. The correct answer is 26%.. This is a common calculation on the Maryland real estate exam.
Related Maryland Finance (alternative) Questions
- Maryland's Community Reinvestment Act (CRA) assessment encourages lenders to:
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within three business days?
- Under RESPA, a kickback or unearned fee paid in connection with a Maryland real estate settlement service is:
- In Maryland, a 'wraparound mortgage' involves:
- The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to:
- In Maryland, 'assumption of a mortgage' means the buyer:
- Under RESPA in Maryland, a lender must provide the Loan Estimate (LE) within how many business days of a complete loan application?
- What is the purpose of mortgage insurance (PMI or MIP) in a Maryland home purchase?
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →