Real Estate Math
A home has a monthly PITI payment of $2,450. The buyer's gross monthly income is $7,200. What is the front-end DTI ratio?
A28%
B32%
C34%✓ Correct
D36%
Explanation
Front-end DTI = Housing payment / Gross income = $2,450 / $7,200 = 0.3403 = 34%. Using the values given ($2,450, $7,200), apply the appropriate formula.. The correct answer is 34%.. This is a common calculation on the Utah real estate exam.
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