Answer:
$5600
Explanation:
ANNUAL INCOME =$240,000
DTI LIMIT OF 28%
FRONT END DTI LIMIT PER ANNUM
240000*0.28
=67200
THEREFORE
monthly spendon principal, interest, taxes and insurance
=67200/12
=$5600
Answer:
$5,600
Explanation:
The front-end DTI is the debt to income ratio and refers to the amount of income that can be used to cover housing costs. According to this, to find the most that they will allow Jim to spend on monthly principal, interest, taxes and insurance, you have to calculate 28% of Jim's annual income that represent the maximum amount that he will be allowed to spend on housing costs and divide the result by 12:
$240,000*28%= $67,200
$67,200/12= $5,600
The most that they will allow Jim to spend on monthly principal, interest, taxes and insurance is $5,600.
