Real Estate Math

A buyer in Indiana takes out a $200,000 30-year mortgage at 7% annual interest. The monthly payment factor for a 30-year, 7% loan is approximately $6.65 per $1,000 borrowed. What is the monthly payment?

A$1,130
B$1,330✓ Correct
C$1,530
D$1,730

Explanation

Monthly payment = (Loan ÷ $1,000) × factor = ($200,000 ÷ $1,000) × $6.65 = 200 × $6.

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