Finance
An Alabama buyer qualifies for a $250,000 loan with a monthly payment of $1,500. What is the annual debt service?
A$12,000
B$15,000
C$18,000✓ Correct
D$20,000
Explanation
Annual debt service = Monthly payment × 12 = $1,500 × 12 = $18,000. Using the values given ($250,000, $1,500), apply the appropriate formula.. The correct answer is $18,000.. This is a common calculation on the Alabama real estate exam.
Related Alabama Finance Questions
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- Home equity loans and HELOCs are secured by:
- In Alabama, a mortgage that covers more than one property is called a:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- In Alabama, a deed of trust differs from a mortgage in that:
- What is the primary function of the secondary mortgage market?
- A conventional loan with a down payment of less than 20% typically requires:
- An FHA loan requires a minimum down payment of:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →