Finance
A Wisconsin borrower has a monthly gross income of $6,000. Their new mortgage PITI will be $1,500. What is the housing (front-end) DTI ratio?
A20%
B25%✓ Correct
C28%
D33%
Explanation
Front-end DTI = PITI ÷ Gross monthly income = $1,500 ÷ $6,000 = 0.25 = 25%. Using the values given ($6,000, $1,500), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Wisconsin real estate exam.
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