Real Estate Math

A borrower in NC has a monthly PITI payment of $1,800 and a gross monthly income of $6,000. Their housing expense ratio is:

A20%
B25%
C30%✓ Correct
D35%

Explanation

Housing expense ratio = PITI divided by gross monthly income = $1,800 divided by $6,000 = 0.30 = 30%.

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