Real Estate Math

A New Mexico buyer purchases a home for $340,000 and puts 20% down. Their loan is for $272,000 at 6.75% for 30 years (monthly factor $6.49/$1,000). What is their monthly P&I?

A$1,765.28✓ Correct
B$1,883.28
C$2,009.28
D$1,700.00

Explanation

$272,000 / $1,000 × $6.49 = 272 × $6.49 = $1,765.28 monthly P&I. To solve this, multiply the relevant values: $340,000 and $272,000 at 20%.. The correct answer is $1,765.28.. This is a common calculation on the New Mexico real estate exam.

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