Real Estate Math

A Connecticut buyer puts 20% down on a $530,000 home and obtains a 30-year mortgage at 7.0%. Using a monthly payment factor of $6.65 per $1,000 borrowed, what is the approximate P&I payment?

A$2,821.20✓ Correct
B$3,519.50
C$2,902.20
D$3,172.00

Explanation

Loan = $530,000 × 80% = $424,000. Monthly P&I = ($424,000 ÷ $1,000) × $6.

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