General Mortgage KnowledgeQuestion 127 of 400
A borrower's gross monthly income is $10,000 and the proposed PITI is $2,800. What is the front-end (housing) ratio?
a.25%
b.30%
c.28%
d.35%
Explanation
Front-end ratio = $2,800 / $10,000 = 28%. The other percentages do not equal PITI divided by gross income.
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