General Mortgage KnowledgeQuestion 139 of 400
A borrower earns $7,200 gross monthly. The lender's maximum housing (front-end) ratio is 28%. What is the largest PITI the borrower can qualify for on that ratio?
a.$1,800
b.$2,304
c.$2,016
d.$2,160
Explanation
Max PITI = 28% x $7,200 = $2,016. $2,304 uses 32%, $2,160 uses 30%, and $1,800 uses 25% — none match the stated 28%.
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