Real Estate Math

A Missouri homebuyer's credit score qualifies them for a 30-year fixed rate mortgage at 6.5%. The monthly payment on a $240,000 loan (principal and interest) using a factor of $6.32 per $1,000 is approximately:

A$1,316.80
B$1,516.80✓ Correct
C$1,240.00
D$1,560.00

Explanation

Monthly P&I = (Loan Amount / $1,000) x Payment Factor = ($240,000 / $1,000) x $6.32 = 240 x $6.

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