Real Estate Math
A North Dakota buyer's income-to-debt ratio is calculated as total monthly debt payments of $1,800 divided by gross monthly income of $6,000. What is the DTI ratio?
A25%
B30%✓ Correct
C35%
D40%
Explanation
DTI ratio = Total monthly debt payments / Gross monthly income = $1,800 / $6,000 = 0.30 = 30%. Using the values given ($1,800, $6,000), apply the appropriate formula.. The correct answer is 30%.. This is a common calculation on the North Dakota real estate exam.
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