Real Estate Math

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)?

A$3,635✓ Correct

B$4,085

C$4,535

D$4,800

Explanation

Max total debt = $9,500 × 43% = $4,085. Max housing payment = $4,085 − $450 (car) = $3,635. To solve this, multiply the relevant values: $9,500 and $450 at 43%.. The correct answer is $3,635.. This is a common calculation on the Washington real estate exam.

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