Finance
A North Dakota borrower's gross monthly income is $6,500. Using the 28% front-end ratio, what is the maximum monthly housing payment?
A$1,495
B$1,820✓ Correct
C$1,950
D$2,275
Explanation
Maximum housing payment = Gross monthly income × Front-end ratio = $6,500 × 28% = $1,820. The front-end ratio (housing ratio) limits how much of gross income can go toward principal, interest, taxes, and insurance (PITI).
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