Real Estate Math
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$2,625✓ Correct
B$3,500
C$1,750
D$5,250
Explanation
Loan = $700,000 × 75% = $525,000. Annual mortgage insurance = $525,000 × 0.5% = $2,625. To solve this, multiply the relevant values: $700,000 at 25%.. The correct answer is $2,625.. This is a common calculation on the Massachusetts real estate exam.
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