Real Estate Math
A NJ mortgage is for $360,000 at 5.5% annual interest. Using simple interest for the first month, what is the interest portion of the first payment?
A$1,650✓ Correct
B$1,980
C$1,540
D$2,200
Explanation
Monthly interest = $360,000 × (0.055 ÷ 12) = $360,000 × 0.
People Also Study
Related New Jersey Questions
- A buyer obtains a $320,000 mortgage at 6.5% annual interest. What is the first month's interest payment?Real Estate Math
- A buyer's loan is $360,000 at 7% annual interest. Their monthly payment (P&I) is $2,396. How much of the first payment goes to principal?Real Estate Math
- A NJ buyer obtains a mortgage for $340,000 at 7% annual interest. What is the first month's interest payment?Real Estate Math
- A NJ investor takes out a $600,000 interest-only commercial mortgage at 6.5% annual interest. What is the monthly interest payment?Real Estate Math
- A New Jersey buyer obtains a $300,000 mortgage at 7% annual interest. What is the first month's interest payment?Finance
- A NJ borrower obtains a 30-year fixed mortgage for $320,000 at 6.5%. The monthly payment (P&I) is approximately $2,023. After the first payment, the loan balance is approximately:Finance
- In NJ, when an ARM (adjustable-rate mortgage) is at its annual or lifetime cap, it means the interest rate:Finance
- A New Jersey homeowner with an adjustable-rate mortgage is concerned about payment increases. The cap structure '2/2/6' means:Finance
Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →