PITI is typically quoted on a monthly basis and compared to a borrower's monthly gross income by means of computing the individual's front-end and back-end ratios, which are used to approve mortgage loans. Generally, mortgage lenders prefer PITI to be equal to, or less than 28%, of a borrower's gross monthly income. Example: If the lender requires a debt-to-income ratio of 28/36, then to qualify a borrower for a mortgage, the lender would go through the following process to determine what expense levels they would accept: Using Yearly Figures: Gross Income of $45,000 $45,000 x .28 = $12,600 allowed for housing expenses, which would include the principal payment, interest, taxes and insurance. $45,000 x .36 = $16,200 allowed for housing expense plus recurring debt. The recurring debt would be such things as student loan payments, revolving credit payments, and car payments. Using Monthly Figures: Gross Income of $3,750 ($45,000/12) $3,750 x .28 = $1,050 allowed for housing expense (PITI) $3,750 x .36 = $1,350 allowed for housing expense (PITI) plus recurring debt. Do you consider such guidelines too restrictive for an individual to be able to qualify for a mortgage? Explain fully your rationale for your stated position. (You may want to calculate your overall "PTIT" percentages.)