Real Estate Math

A Wyoming buyer's monthly PITI (principal, interest, taxes, and insurance) payment is $2,400. The lender requires that PITI not exceed 28% of gross monthly income. What minimum gross monthly income is required?

A$7,200
B$8,571✓ Correct
C$6,720
D$9,600

Explanation

Minimum gross monthly income = PITI ÷ Maximum Ratio = $2,400 ÷ 0.28 = $8,571. To solve this, multiply the relevant values: $2,400 at 28%.. The correct answer is $8,571.. This is a common calculation on the Wyoming real estate exam.

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