Real Estate Math
A Washington buyer qualifies for a maximum monthly mortgage payment of $2,600 PITI. Taxes = $350/month, Insurance = $120/month. What maximum loan amount might the buyer qualify for if the P&I factor is $6.65 per $1,000 at 7%?
A$294,361
B$319,549✓ Correct
C$316,541
D$322,000
Explanation
Max P&I = $2,600 − $350 − $120 = $2,130. Max loan = ($2,130 ÷ $6.
People Also Study
Related Washington Questions
- A Washington buyer qualifies for a maximum monthly payment (PITI) of $3,200. Annual taxes are $4,800 and annual insurance is $1,200. What is the maximum monthly P&I payment?Real Estate Math
- A Washington listing has an annual property tax of $7,200 and a homeowner's insurance premium of $1,800/year. A buyer's monthly escrow payment for taxes and insurance alone is:Real Estate Math
- A Washington homebuyer obtains a 30-year fixed mortgage at 7% for $450,000. The monthly P&I payment factor for $1,000 at 7% for 30 years is approximately $6.65. What is the monthly P&I payment?Finance
- A Washington buyer's monthly gross income is $9,500 and they have a car payment of $450/month. The lender applies a 43% DTI limit. What is the maximum allowable monthly housing payment (PITI)?Real Estate Math
- A Washington buyer's 30-year loan is $390,000 at 6.5%. The monthly P&I payment factor for $1,000 at 6.5% is $6.32. After the first month, the balance is approximately:Finance
- A Washington buyer has a gross monthly income of $11,000. Maximum allowed housing ratio is 28% and total DTI is 43%. They have $800/month in other debt. What is the maximum PITI?Real Estate Math
- A Washington borrower's FHA loan requires mortgage insurance premium (MIP). When can the annual MIP be cancelled on an FHA loan with a 3.5% down payment (96.5% LTV)?Finance
- A Washington borrower has $50,000 in student loan debt, a $400/month car payment, and earns $7,500/month gross income. The proposed mortgage PITI is $2,200/month. What is the back-end DTI ratio?Finance
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →