You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?
A)$840
B)$1,080
C)$680
D)$640
E)$880

Question

Quizplus · Accepted Answer

The 28/36 rule suggests that your maximum mortgage payment (PITI) should not exceed 28% of your monthly gross income. With an annual gross income of $36,000, your monthly gross income is $3,000 ($36,000 / 12 months). Therefore, 28% of $3,000 is $840 ($3,000 * 0.28).

You Have an Annual Gross Income of $36,000