Finance
A West Virginia borrower has a gross monthly income of $5,000. Lender guidelines set a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?
A$1,000
B$1,200
C$1,400✓ Correct
D$1,750
Explanation
Maximum PITI = Gross monthly income × Housing ratio = $5,000 × 28% = $1,400. To solve this, multiply the relevant values: $5,000 at 28%.. The correct answer is $1,400.. This is a common calculation on the West Virginia real estate exam.
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