An applicant for a mortgage has a gross annual income of $80,000. Their annual property taxes are $3,000, and their heating costs are estimated at $1,800 per year. What is the maximum allowable monthly Principal, Interest, and Taxes (PIT) payment if the lender's GDS ratio is 32%? (Assume $100/month for heating costs automatically applied to GDS calculation if not explicitly given).

Question: An applicant for a mortgage has a gross annual income of $80,000. Their annual property taxes are $3,000, and their heating costs are estimated at $1,800 per year. What is the maximum allowable monthly Principal, Interest, and Taxes (PIT) payment if the lender's GDS ratio is 32%? (Assume $100/month for heating costs automatically applied to GDS calculation if not explicitly given).

Answer options:

• $2,133.33 ✅ $1,813.33
• $2,466.67
• $1,933.33

Correct answer: $1,813.33

Explanation: Gross monthly income = $80,000 / 12 = $6,666.67. Maximum GDS = $6,666.67 * 0.32 = $2,133.33. Monthly taxes = $3,000 / 12 = $250. Monthly heating = $1,800 / 12 = $150. Max PIT = Maximum GDS - Monthly Taxes - Monthly Heating = $2,133.33 - $250 - $150 = $1,733.33.