Real Estate Math
A buyer's monthly gross income is $6,500. Using a 36% back-end debt-to-income ratio, and the buyer already has $500/month in recurring debts, what is the maximum monthly mortgage payment (PITI) the lender will allow?
A$1,840✓ Correct
B$2,340
C$2,500
D$2,840
Explanation
Maximum total debt at 36%: $6,500 × 0.36 = $2,340.
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