Real Estate Math

A Massachusetts buyer puts 10% down on a $640,000 home and finances the rest. Annual property taxes are $9,600. Monthly homeowner's insurance is $150. Using a P&I factor of $6.65 per $1,000, what is the total monthly PITI payment?

A$4,780.40✓ Correct
B$4,000
C$5,000
D$3,816

Explanation

Loan = $640,000 × 90% = $576,000. P&I = ($576,000 ÷ $1,000) × $6.

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