Real Estate Math
An Illinois property sold for $380,000. The buyer puts 20% down and gets a 30-year mortgage at 6.5%. What is the loan amount?
A$304,000✓ Correct
B$76,000
C$380,000
D$300,000
Explanation
Down payment = $380,000 × 0.20 = $76,000. Loan amount = $380,000 - $76,000 = $304,000. With a 20% down payment, the buyer avoids PMI on a conventional loan. The $304,000 loan amount would then be used to calculate monthly mortgage payments based on the 6.5% interest rate over 30 years.
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