General Mortgage KnowledgeQuestion 99 of 400
A borrower has gross monthly income of $6,000 and a total PITI payment of $1,500. What is the front-end (housing) DTI ratio?
a.20%
b.22%
c.25%
d.30%
Explanation
Front-end DTI = PITI / gross monthly income = $1,500 / $6,000 = 25%. The other choices do not equal the housing payment divided by income.
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