Real Estate Math

A Wisconsin borrower's monthly gross income is $6,500. The lender allows a front-end (PITI) ratio of 28%. What is the maximum monthly housing payment?

A$1,560
B$1,620
C$1,820✓ Correct
D$2,080

Explanation

Maximum PITI = $6,500 × 28% = $1,820. To solve this, multiply the relevant values: $6,500 at 28%.. The correct answer is $1,820.. This is a common calculation on the Wisconsin real estate exam.

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