Real Estate Math
A Minnesota couple takes out a $260,000 mortgage at 5.25% for 30 years using a payment factor of $5.52 per $1,000. What is their approximate monthly PITI payment if taxes are $450/month and insurance is $120/month?
A$1,435.20
B$1,505.20
C$2,005.20✓ Correct
D$1,886.40
Explanation
P&I payment = ($260,000 / $1,000) x $5.52 = 260 x $5.52 = $1,435.20. PITI = P&I + Taxes + Insurance = $1,435.20 + $450 + $120 = $2,005.20. PITI represents the total monthly housing expense including Principal, Interest, Taxes, and Insurance - the most common way to express total housing costs for qualification purposes.
Related Minnesota Real Estate Math Questions
- A Minnesota broker retains 30% of the total commission and pays the listing and selling agents each 35%. On a $450,000 sale at 6%, how much does the broker retain?
- A Minnesota buyer's agent receives 2.8% of a $425,000 sale price. How much does the buyer's agent's brokerage earn?
- A Minnesota home listed at $399,000 sells at a 2% discount. What is the sale price?
- A Minnesota investor uses a 1031 exchange to sell a property for $650,000 (original cost $400,000) and purchase a replacement property. The gain deferred in the exchange is:
- A Minnesota property owner is negotiating a commercial lease at $22/sq ft/year for 3,500 square feet. What is the annual base rent?
- A buyer qualifies for a monthly P&I payment of $1,620. Using a payment factor of $6.00 per $1,000, how large a loan can this buyer obtain?
- A Minnesota buyer puts 20% down on a $375,000 home. The down payment is $75,000. How much will be financed?
- A Minnesota property has a NOI of $54,000 and a cap rate of 6%. What is the estimated property value?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →