Real Estate Math

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?

A$1,715✓ Correct
B$2,365
C$1,065
D$1,025

Explanation

Maximum total monthly debt = $5,500 × 43% = $2,365. Maximum mortgage payment = $2,365 − $650 (existing debts) = $1,715.

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