Finance
A Minnesota homebuyer's monthly gross income is $6,500. Standard conventional mortgage guidelines suggest a maximum housing expense ratio of 28%. What is the maximum monthly PITI payment allowed?
A$1,560
B$1,820✓ Correct
C$2,080
D$1,300
Explanation
Maximum PITI = Gross monthly income x Housing expense ratio = $6,500 x 28% = $6,500 x 0.28 = $1,820.
Related Minnesota Finance Questions
- In Minnesota, the secondary mortgage market is important because it:
- Minnesota's Mortgage Registry Tax (MRT) is charged on new mortgages. If the MRT rate is $0.23 per $100, what is the MRT on a $280,000 mortgage?
- In Minnesota, a 'subordination clause' in a mortgage agreement means:
- A Minnesota property is purchased for $275,000 with a 10% down payment. The lender requires private mortgage insurance (PMI). PMI is typically required until the loan-to-value (LTV) ratio drops below what threshold?
- Private Mortgage Insurance (PMI) is typically required when a buyer's down payment is less than:
- A Minnesota buyer closes on a home on March 15. The seller has already paid the full year's property taxes. At closing, who pays what?
- A Minnesota borrower is told their loan has a due-on-sale clause. This means:
- A Minnesota borrower has a debt-to-income (DTI) ratio of 48%. Most conventional lenders require DTI under what threshold?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →