Finance
A NJ buyer's monthly gross income is $8,500. The maximum monthly housing expense allowed under a 28% front-end ratio is:
A$2,040
B$2,380✓ Correct
C$2,550
D$2,780
Explanation
Maximum housing expense = $8,500 × 0.28 = $2,380. To solve this, multiply the relevant values: $8,500 at 28%.. The correct answer is $2,380.. This is a common calculation on the New Jersey real estate exam.
Related New Jersey Finance Questions
- A non-resident seller of NJ real property is subject to NJ non-resident withholding at closing. This withholding is:
- The back-end ratio (total debt ratio) used by lenders compares:
- Points paid at closing to reduce the mortgage interest rate are called:
- A balloon mortgage requires the borrower to:
- Which of the following best describes an adjustable-rate mortgage (ARM)?
- In NJ, a 'wraparound mortgage' (or 'all-inclusive trust deed') involves:
- An adjustable-rate mortgage (ARM) in New Jersey poses the risk to the borrower that:
- What is the purpose of a mortgage escrow account?
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →