Finance
A Texas borrower has a gross monthly income of $7,500. Their proposed PITI (principal, interest, taxes, insurance) payment is $2,100 and other monthly debts total $750. What is their back-end (total) DTI ratio?
A28%
B38%
C42%✓ Correct
D46%
Explanation
Back-end DTI = (PITI + other debts) ÷ gross income = ($2,100 + $750) ÷ $7,500 = $2,850 ÷ $7,500 = 38%. The correct answer is 38%.
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