A mortgage loan of $200,000 at 5% interest has an annual interest payment of how much in the first year (interest only)?
Why $10,000 Is Correct
Answer B: $10,000
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alaska Questions
- A buyer obtains a $200,000 mortgage at 6% annual interest, interest-only for the first month. What is the first month's interest payment?Finance
- A buyer's monthly principal and interest payment is $1,850. Annual property taxes are $3,600 and homeowner's insurance is $1,200 per year. What is the buyer's total PITI monthly payment?Real Estate Math
- An Alaska buyer obtains a 30-year, $240,000 mortgage at 7% annual interest. What is the first month's interest payment?Real Estate Math
- A loan of $200,000 at 6% annual interest is interest-only for the first year. What are the total interest payments in the first year?Real Estate Math
- A mortgage loan of $320,000 at 6.5% annual interest. What is the monthly interest for the first payment?Real Estate Math
- A mortgage that requires equal monthly payments applied first to interest, with the remainder reducing the principal balance, is called a(n):Finance
- A borrower in Alaska obtains a $300,000 mortgage at 6% interest with a 30-year amortization. The approximate monthly payment for principal and interest is:Finance
- Which type of mortgage loan is characterized by a fixed interest rate and equal monthly payments that fully repay the loan over its term?Finance
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →