Real Estate Math

A NJ homebuyer's gross monthly income is $12,000. Their proposed PITI payment is $3,200 and monthly debt payments total $800. What is the total debt-to-income ratio (back-end)?

A26.7%
B33.3%
C38.3%✓ Correct
D40.0%

Explanation

Total DTI = (PITI + Other Debts) ÷ Gross Monthly Income = ($3,200 + $800) ÷ $12,000 = $4,000 ÷ $12,000 = 0.333 = 33.

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