Real Estate Math
A South Dakota buyer's loan application shows monthly income of $7,500 and monthly debts (excluding the proposed mortgage) of $600. If the lender's maximum back-end DTI is 43%, what is the maximum monthly mortgage payment allowed?
A$2,625✓ Correct
B$3,225
C$2,231
D$2,025
Explanation
Maximum total monthly debt: $7,500 × 43% = $3,225. Maximum mortgage payment: $3,225 - $600 (existing debts) = $2,625.
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