Real Estate Math
An Illinois buyer gets a 30-year mortgage for $280,000 at 7% interest. The monthly payment factor per $1,000 at 7% for 30 years is $6.65. What is the monthly payment?
A$1,862✓ Correct
B$1,960
C$1,792
D$1,630
Explanation
Monthly payment = (Loan Amount ÷ 1,000) × Payment Factor = ($280,000 ÷ 1,000) × $6.65 = 280 × $6.65 = $1,862. This is the principal and interest payment only; actual monthly payments would also include property taxes, insurance, and potentially PMI (if applicable). Payment factors per $1,000 are useful tools for quickly calculating mortgage payments.
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