A lender uses a 28% front-end qualifying ratio. If a borrower's gross monthly income is $4,800, what is the maximum allowable monthly housing payment?
Correct Answer
B) $1,344
To find the maximum monthly housing payment, multiply the borrower's gross monthly income by the front-end ratio: $4,800 × 0.28 = $1,344.
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A lender uses a 28% front-end qualifying ratio. If a borrower has a gross monthly income of $6,000, what is the maximum allowable monthly housing payment?
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