Real Estate Math
A buyer's monthly PITI payment is $2,400. The lender's maximum front-end DTI ratio is 28%. What is the minimum gross monthly income required?
A$6,720
B$8,000
C$8,571✓ Correct
D$6,000
Explanation
Minimum gross monthly income = PITI ÷ front-end DTI = $2,400 ÷ 0.28 = $8,571.43, rounded to $8,571. To solve this, multiply the relevant values: $2,400 at 28%.. The correct answer is $8,571.. This is a common calculation on the Washington real estate exam.
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