Real Estate Math
A Montana buyer is purchasing a property using an FHA loan (3.5% down). The purchase price is $260,000. What is the down payment and loan amount?
A$250,900✓ Correct
B$13,000 down / $247,000 loan
C$26,000 down / $234,000 loan
D$7,800 down / $252,200 loan
Explanation
Down payment = $260,000 x 0.035 = $9,100. Loan amount = $260,000 - $9,100 = $250,900. To solve this, multiply the relevant values: $260,000 at 3.5%.. The correct answer is $250,900.. This is a common calculation on the Montana real estate exam.
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