Real Estate Math
A buyer's gross monthly income is $8,500. The lender allows a maximum front-end DTI of 28%. What is the maximum allowable monthly housing expense?
A$2,380✓ Correct
B$2,550
C$2,100
D$1,700
Explanation
Maximum housing expense = $8,500 × 28% = $8,500 × 0.28 = $2,380. To solve this, multiply the relevant values: $8,500 at 28%.. The correct answer is $2,380.. This is a common calculation on the Massachusetts real estate exam.
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