General Mortgage KnowledgeQuestion 159 of 400
A borrower's gross monthly income is $4,000 and the proposed PITI is $1,200. What is the front-end ratio?
a.25%
b.28%
c.30%
d.33%
Explanation
Front-end ratio = $1,200 / $4,000 = 30%. The other percentages do not equal PITI divided by gross income.
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