Real Estate Math
A buyer takes a 15-year fixed mortgage for $280,000 at 6%. Compared to a 30-year mortgage at the same rate, the 15-year mortgage will have:
ALower monthly payments and more total interest
BHigher monthly payments and significantly less total interest paid✓ Correct
CThe same monthly payments over a shorter term
DLower total interest and lower monthly payments
Explanation
A 15-year mortgage has higher monthly payments than a 30-year mortgage (since principal is repaid faster) but significantly less total interest paid because the loan is outstanding for half the time.
Related Connecticut Real Estate Math Questions
- A Connecticut home buyer is approved for a maximum monthly payment of $2,800 (PITI). Taxes are $425/month and insurance is $125/month. What is the maximum P&I payment available for the mortgage?
- A Connecticut borrower pays 2 discount points on a $300,000 mortgage. How much does this cost?
- A Connecticut salesperson earns a 2.5% buyer's agent commission on a $615,000 sale. The salesperson's broker takes 40%. What does the salesperson net?
- A buyer purchases a Connecticut property for $325,000 and puts 20% down. What is the loan amount?
- An owner purchased a Connecticut rental property for $400,000 and it depreciated in value to $320,000 over 5 years. What was the average annual depreciation?
- A seller lists a property for $550,000. After 45 days, the seller reduces the price by 4%. What is the new list price?
- A Connecticut buyer puts 10% down on a $395,000 home. The lender charges 1.5 discount points. How much does the buyer pay in points?
- A Connecticut seller wants to net $350,000 after paying a 6% commission and $4,500 in closing costs. What sales price is needed?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →