General Mortgage KnowledgeQuestion 168 of 400
A borrower earns $6,500 gross monthly. Using a 28% housing ratio, what is the maximum PITI the borrower qualifies for?
a.$1,625
b.$1,950
c.$2,080
d.$1,820
Explanation
Max PITI = 28% x $6,500 = $1,820. $1,625 uses 25%, $1,950 uses 30%, and $2,080 uses 32% — none match the stated 28%.
Practice all 400 questions free — no signup required.
Related questions on this topic
- On a $400,000 FHA purchase with the minimum down payment, what is the maximum base loan amount (before financing UFMIP)?
- A loan balance is $150,000 at an annual rate of 4.8%. How much of the next monthly payment is interest?
- A home is worth $450,000. A borrower wants a first mortgage of $315,000 and a second of $22,500. What is the CLTV?
- USDA guaranteed loans charge an upfront guarantee fee and an annual fee. These fees are most similar in purpose to which of the following?
- On many FHA loans with the minimum down payment, the annual MIP generally remains for what duration?
- Which of the following is an example of an index that can be used to set the rate on an adjustable-rate mortgage?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review