Real Estate Math

A buyer puts 20% down on a $380,000 home and gets a 30-year loan at 6.5%. Using an amortization factor of $6.32 per $1,000, what is the approximate monthly principal and interest payment?

AA. $2,401.60
BB. $1,921.28✓ Correct
CC. $2,004.80
DD. $1,641.60

Explanation

Down payment = 20% × $380,000 = $76,000. Loan amount = $380,000 - $76,000 = $304,000. Number of $1,000 units = 304. Monthly P&I = 304 × $6.32 = $1,921.28.

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