Finance
A Michigan borrower has a monthly gross income of $5,500. Their proposed PITI mortgage payment is $1,540. What is their front-end (housing) debt-to-income ratio?
A24%
B28%✓ Correct
C32%
D36%
Explanation
Front-end DTI = PITI / Gross Monthly Income = $1,540 / $5,500 = 0.28 = 28%.
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