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if a buyer has a gross monthly income of $8,500, student loans of $150/month, and car payments of $250/month, what is the maximum monthly piti loan he or she could get if the lender has set a total debt ratio of 38%?



Answer :

$2830 is the maximum monthly PITI loan he or she could get.

Define PITI loan.

Principal, interest, taxes, and insurance, or PITI, are the four criteria that lenders use to determine your eligibility for a mortgage. One of the typical elements of a mortgage payment is this. PITI  is a common way for buyers and lenders to assess the affordability of a particular mortgage. If your homeowner's insurance or real estate tax bill fluctuates over time, it can vary. Depending on the ARM terms you choose, your principal and interest may alter if you take out an adjustable-rate mortgage (ARM) after the initial low-rate period expires.

Gross monthly income = $8,500

Student loans per month = $150

Car payments per/month = $250

Maximum monthly piti loan = ($8,500 x 38%) - $150 - $250

=$2830

To learn how to calculate a PITI loan, visit:

https://brainly.com/question/15852492

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