Real Estate Math
A borrower has a monthly gross income of $5,500. The lender's maximum front-end DTI is 28%. What is the maximum monthly housing payment allowed?
A$1,210
B$1,320
C$1,540✓ Correct
D$1,650
Explanation
Maximum housing payment = $5,500 x 28% = $5,500 x 0.28 = $1,540.
People Also Study
Related Oklahoma Questions
- If a lender requires a maximum DTI of 43% and the borrower's gross monthly income is $6,500, what is the maximum total monthly debt payment allowed?Real Estate Math
- An Oklahoma buyer's monthly gross income is $6,200. The lender allows a 36% total DTI. The buyer has $450/month in existing debt. What is the maximum monthly housing payment?Real Estate Math
- An Oklahoma homebuyer's loan officer tells them their gross monthly income is $6,000 and their maximum housing payment (front-end ratio) should not exceed 28%. The maximum monthly PITI payment is:Finance
- An Oklahoma buyer's lender requires a debt-to-income ratio no greater than 43%. The buyer has gross monthly income of $5,500 and existing monthly debts of $650. What is the maximum monthly mortgage payment (PITI) allowed?Real Estate Math
- An Oklahoma lender uses the income approach to qualify a rental property for financing. The property has gross rents of $2,800/month. The lender applies a 25% vacancy/expense factor. What is the qualifying net income used for the debt service calculation?Real Estate Math
- An Oklahoma borrower with a 780 credit score, 20% down payment, and stable income would most likely qualify for:Finance
- In Oklahoma, a mortgage lender who discovers after closing that the borrower misrepresented their income on the loan application may:Finance
- In Oklahoma, a lender who makes a mortgage loan in a flood zone must require the borrower to obtain:Finance
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →