Finance
A New Jersey condominium buyer's monthly PITI payment is $2,800. The lender's maximum front-end (housing) DTI ratio is 28%. What is the minimum qualifying gross monthly income?
A$7,840
B$10,000✓ Correct
C$9,800
D$8,400
Explanation
Minimum gross income = PITI ÷ DTI limit = $2,800 ÷ 0.28 = $10,000 per month. To solve this, multiply the relevant values: $2,800 at 28%.. The correct answer is $10,000.. This is a common calculation on the New Jersey real estate exam.
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