If PITI is $1,275 and gross monthly income is $5,600, what is the maximum allowable amount for other monthly obligations to remain within guidelines?

To determine the maximum allowable amount for other monthly obligations while staying within specific guidelines, we first need to understand the components of a borrower's qualifying ratios. The PITI (Principal, Interest, Taxes, and Insurance) represents the total monthly housing payment, and in this scenario, it is $1,275.

When evaluating borrowing capabilities, particularly under conventional mortgage guidelines, one of the key ratios typically referenced is the debt-to-income (DTI) ratio. A common standard is that total monthly debt obligations, including PITI and other monthly obligations, should not exceed a certain percentage of the borrower’s gross monthly income.

In this case, with a gross monthly income of $5,600, if we apply a common maximum DTI guideline of about 43%, we can calculate the maximum allowable total monthly debt obligations.

First, we calculate 43% of the gross monthly income:

0.43 × $5,600 = $2,408

Next, we subtract the PITI amount from this total to find the allowable amount for other monthly obligations:

$2,408 - $1,275 = $1,133

Since the question asks for the maximum allowable amount for other monthly obligations and implies adherence to that guideline, the