Finance
A New Hampshire lender uses a 28/36 qualifying ratio. A buyer with gross monthly income of $5,000 may have a maximum PITI payment of:
A$1,800
B$1,400✓ Correct
C$2,000
D$1,600
Explanation
The 28% front-end ratio limits housing costs: $5,000 × 0.28 = $1,400 maximum PITI payment. The 36% back-end ratio limits total debt to $5,000 × 0.36 = $1,800.
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