A Nevada borrower has a $350,000 30-year fixed mortgage at 6.5% interest. Using the factor table, the monthly payment factor is $6.32 per $1,000. What is the monthly principal and interest payment?

Explanation

Monthly P&I = (Loan Amount ÷ $1,000) × Payment Factor = (350 × $6.32) = $2,212. Loan amount divided by 1,000 = 350 units. 350 × $6.32 = $2,212 per month. The payment factor method is commonly used on Nevada real estate exams to calculate mortgage payments without requiring complex financial formulas. Memorizing common factors (e.g., 6% 30yr ≈ $5.99, 7% 30yr ≈ $6.65) helps with exam calculations.