A lender uses a 28% front-end qualifying ratio. If a borrower's gross monthly income is $5,200, what is the maximum allowable monthly housing payment?
Correct Answer
B) $1,456
Maximum monthly housing payment = Gross monthly income × Front-end ratio. $5,200 × 0.28 = $1,456.
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A lender uses a 28% front-end qualifying ratio. If a borrower's gross monthly income is $6,000, what is the maximum allowable monthly housing expense?
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A lender uses a 28% front-end qualifying ratio. If a borrower's gross monthly income is $6,000, what is the maximum allowable monthly housing payment?