Real Estate Math
A New Mexico buyer is prequalified to spend up to 38% of gross monthly income on total housing debt. If their gross monthly income is $8,500, what is their maximum total monthly housing payment (PITI + debts)?
A$2,380
B$3,230✓ Correct
C$3,530
D$4,250
Explanation
Maximum back-end DTI: $8,500 × 0.38 = $3,230 maximum total monthly debt including housing. To solve this, multiply the relevant values: $8,500, at 38%.. The correct answer is $3,230.. This is a common calculation on the New Mexico real estate exam.
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