A Colorado property is worth $420,000. The owner takes a mortgage for 75% of the value. Monthly P&I payments are $2,150 and monthly property taxes and insurance are $425. What is the total monthly PITI payment?
Why $2,575 Is Correct
Answer C: $2,575
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 Colorado Questions
- A buyer's monthly principal and interest payment is $1,850. Annual property taxes are $3,600 and homeowners insurance is $1,200 annually. What is the total monthly PITI payment?Real Estate Math
- A Colorado buyer wants to qualify for a $320,000 mortgage. The lender requires a maximum front-end ratio of 28%. The monthly payment (PITI) is $2,100. What minimum monthly gross income is required?Real Estate Math
- A Colorado buyer earns $8,500/month gross income. Using a 43% maximum total DTI ratio, what is the maximum total monthly debt payment allowed (including PITI)?Real Estate Math
- A Colorado borrower obtains a 30-year fixed-rate mortgage for $300,000 at 7% interest. The monthly principal and interest payment is approximately $1,996. What is the total interest paid over 30 years?Finance
- A Colorado buyer's PITI payment is $2,400/month. Their gross monthly income is $7,500. What is their front-end (housing) DTI ratio?Finance
- A Colorado homeowner with a $300,000 mortgage at 8% makes interest-only payments for the first year. What is the total interest paid in Year 1?Finance
- A Colorado triple net (NNN) lease has base rent of $18/sqft plus $4/sqft taxes, $2/sqft insurance, and $3/sqft maintenance on 3,000 sqft. What is the total annual rent?Real Estate Math
- A Colorado borrower's monthly gross income is $6,000. Their total monthly debt obligations including PITI are $2,400. What is their total DTI ratio?Finance
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
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.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →