Real Estate Math
A South Dakota buyer qualifies for a maximum front-end DTI of 28% with a gross monthly income of $6,500. What is the maximum allowable housing payment (PITI)?
A$1,820✓ Correct
B$1,620
C$1,750
D$1,980
Explanation
Maximum housing payment = Gross Monthly Income × Front-end DTI = $6,500 × 28% = $6,500 × 0.28 = $1,820.
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