Real Estate Math
A New Mexico mortgage has a balance of $175,000 at 6% annual interest. What is the monthly interest-only payment?
A$750
B$875✓ Correct
C$1,050
D$892
Explanation
Monthly interest = Principal x Annual Rate / 12 = $175,000 x 6% / 12 = $175,000 x 0.005 = $875. To solve this, multiply the relevant values: $175,000 at 6%.. The correct answer is $875.. This is a common calculation on the New Mexico real estate exam.
Related New Mexico Real Estate Math Questions
- A buyer in New Mexico puts $20,000 down and pays 1 origination point on a $200,000 loan. What is the total upfront cost excluding down payment?
- A New Mexico home sells for $425,000. The seller pays a 6% commission. What is the total commission?
- If a rectangular lot in New Mexico is 75 feet wide and 120 feet deep, what is its area in square feet?
- A New Mexico property has an NOI of $36,000 and a cap rate of 7.2%. What is the estimated value using the income approach?
- A buyer finances $320,000 at 6.5% annual interest. What is the monthly interest for the first payment?
- A New Mexico home sells for $385,000. The buyer pays 1 origination point and 0.5 discount points on their $300,000 loan. What are the total points cost?
- A property in Albuquerque sold for $410,000. Using a 5% commission, how much does the listing side earn if commissions are split 50/50?
- A property's NOI is $48,000 per year. If the cap rate is 8%, what is the estimated value?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →