Real Estate Math
A Massachusetts buyer obtains a $550,000 mortgage at 6% interest, 30-year term. Using a monthly factor of $5.996 per $1,000, what is the monthly P&I payment?
A$3,297.80✓ Correct
B$2,750.00
C$3,000.00
D$3,500.00
Explanation
Monthly P&I = ($550,000 ÷ $1,000) × $5.996 = 550 × $5.996 = $3,297.80. To solve this, multiply the relevant values: $550,000 and $5.996 at 6%.. The correct answer is $3,297.80.. This is a common calculation on the Massachusetts real estate exam.
Related Massachusetts Real Estate Math Questions
- A broker earns a 6% commission on a $390,000 sale, split 50/50 with the cooperating broker. The listing salesperson earns 65% of the listing broker's share. How much does the listing salesperson earn?
- A Massachusetts property owner takes out a $200,000 equity line at 8% annual interest. They draw the full amount on January 1. How much interest accrues in the first month?
- A Massachusetts property is purchased for $700,000 with a 25% down payment. The bank charges a 0.5% annual mortgage insurance fee on the loan. What is the annual mortgage insurance cost?
- A Massachusetts investor buys land for $200,000, develops it for $650,000, and sells the completed property for $960,000. The investor also paid $19,200 in real estate commissions. What is the net profit?
- A Massachusetts property sells for $465,000. The deed excise is $4.56 per $1,000. What is the excise tax?
- A Massachusetts property management firm charges 7% of gross rents collected. Monthly gross rents for a building are $28,000. What are the annual management fees?
- A Massachusetts property has a net operating income of $95,000 and the cap rate for similar properties is 7.25%. What is the estimated value?
- A Massachusetts seller nets $42,000 after paying a 5% commission on the sale. The commission amount was:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →