An Arizona homebuyer obtains a $280,000 mortgage at 7% annual interest. What is the first month's interest payment?
Why $1,633.33 Is Correct
Answer B: $1,633.33
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Arizona Questions
- A buyer in Arizona obtains a $320,000 adjustable-rate mortgage (ARM) with an initial rate of 5.5%. The loan has a 2/2/5 cap structure. The MAXIMUM rate after the first adjustment is:Finance
- A buyer's loan has a principal balance of $320,000 at 6% annual interest. What is the first month's interest portion of the payment?Real Estate Math
- A buyer obtains a $300,000 mortgage at 5% annual interest. What is the first month's interest payment?Real Estate Math
- A 30-year mortgage has monthly payments of $1,610. The loan balance is $280,000. How much is the interest portion of the first payment at a 6% annual interest rate?Real Estate Math
- A buyer obtains a 30-year fixed-rate mortgage for $360,000 at 7% annual interest. What is the approximate monthly interest charge for the first month?Real Estate Math
- An Arizona borrower obtains a loan where the interest rate can change periodically based on an index. This is called a:Finance
- The 'annual percentage rate' (APR) on an Arizona mortgage is typically HIGHER than the note rate because:Finance
- A '2-1 buydown' mortgage in Arizona temporarily reduces the borrower's interest rate by:Finance
Key Terms to Know
The 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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →