Real Estate Math
A Mississippi homeowner has a $210,000 mortgage at 5.5% with 22 years remaining. They are considering making an extra $500/month principal payment. The primary benefit is:
ATax deduction of the extra payments
BSignificantly reducing the total interest paid and shortening the loan term✓ Correct
CIncreasing their credit score
DReducing their monthly required payment
Explanation
Extra principal payments directly reduce the outstanding loan balance, which reduces the total interest paid over the life of the loan and shortens the payoff timeline. On a 22-year remaining term, an extra $500/month could shave years off the loan and save tens of thousands in interest — a powerful wealth-building strategy.
Related Mississippi Real Estate Math Questions
- A Mississippi homeowner sells their primary residence for $425,000. Their adjusted basis is $225,000 and they are married filing jointly. The taxable capital gain is:
- A Mississippi property is assessed at $160,000 and the tax rate is $22.50 per $1,000 of assessed value. What is the annual property tax?
- A Mississippi broker's office has four salespeople who each close an average of $1,200,000 in sales per year at a 3% commission split to the office. The office's annual gross commission income from these four agents is:
- A Mississippi commercial property is purchased for $900,000 with 25% down. The loan-to-value ratio is:
- A seller in Mississippi wants to net $150,000 after paying a 6% commission. What is the minimum price the property must sell for (rounded to the nearest dollar)?
- A Mississippi property management company charges 8% of collected rents. In January, 90% of the $25,000 in scheduled rents were collected. The management fee for January is:
- A Mississippi home sells for $185,000. The buyer pays 3.5% down. The FHA loan amount is:
- A Mississippi investor pays $180,000 for a rental property and expects an 8% return. The required annual NOI is:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →