Real Estate Math
A Minnesota buyer qualifies for a maximum monthly payment of $1,800 (PITI). If taxes are $250/month and insurance is $75/month, what is the maximum monthly principal and interest payment?
A$1,475✓ Correct
B$1,550
C$1,200
D$1,600
Explanation
Max P&I = Max PITI - Taxes - Insurance = $1,800 - $250 - $75 = $1,475. PITI stands for Principal, Interest, Taxes, and Insurance.
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