Real Estate Math
A buyer in Pennsylvania secures a $280,000 mortgage at 6.5% annual interest. What is the monthly interest-only payment for the first month?
A$1,400
B$1,517✓ Correct
C$1,820
D$2,100
Explanation
Annual interest = $280,000 × 6.5% = $18,200. Monthly interest = $18,200 ÷ 12 = $1,516.67, rounded to $1,517. This interest-only calculation is the first step in understanding amortized mortgage payments.
Related Pennsylvania Real Estate Math Questions
- A Pennsylvania home sells for $320,000. The state Realty Transfer Tax is 1% and the local municipality tax is 1%. The buyer and seller split the tax equally. How much does each party pay?
- A property owner paid $280,000 for a home 5 years ago. It is now appraised at $336,000. What percentage did the property appreciate?
- A seller nets $280,000 after paying a 6% commission. What was the original sales price?
- A Pennsylvania home's assessed value is $180,000 and the assessment ratio is 80%. What is the estimated market value?
- An investor owns a 12-unit apartment building. Each unit rents for $950/month. What is the potential gross annual income?
- A property purchased for $320,000 with 20% down payment financed at 6% for 30 years. The monthly payment on a 30-year amortizing loan at this rate is approximately $1,534. How much total interest would be paid over the full 30-year term?
- A salesperson earns a 3% commission on a $425,000 sale. The broker retains 40% of the commission and the salesperson keeps 60%. How much does the salesperson earn?
- A Pennsylvania property sells at a 12% loss from the original purchase price of $250,000. What is the sale price?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →