Real Estate Math
A NJ homebuyer is told the monthly PITI payment is $3,200. If the lender requires a maximum 28% housing ratio, what minimum gross monthly income is required?
A$10,286
B$11,429✓ Correct
C$12,800
D$14,200
Explanation
Required income = Monthly PITI ÷ Housing Ratio = $3,200 ÷ 0.28 = $11,428.57, rounded to $11,429. To solve this, multiply the relevant values: $3,200 at 28%.. The correct answer is $11,429.. This is a common calculation on the New Jersey real estate exam.
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