Real Estate Math
A buyer's total monthly debt payments are $2,100, including the new mortgage. Their gross income is $7,000/month. What is the back-end (total) DTI?
A28%
B30%✓ Correct
C33%
D40%
Explanation
Back-end DTI = Total monthly debt / Gross monthly income = $2,100 / $7,000 = 0.30 = 30%. Using the values given ($2,100,, $7,000), apply the appropriate formula.. The correct answer is 30%.. This is a common calculation on the Utah real estate exam.
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