Real Estate Math
A Vermont buyer earns $6,500 gross monthly income. The lender allows a maximum housing expense ratio (front-end DTI) of 28%. What is the maximum allowable monthly PITI payment?
A$1,500
B$1,820✓ Correct
C$2,000
D$2,275
Explanation
Maximum PITI = Gross Monthly Income × Housing Ratio = $6,500 × 0.28 = $1,820.
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