Real Estate Math

A property is purchased for $600,000 with 25% down. The buyer obtained a 30-year loan at 7% with a monthly P&I factor of $6.65 per $1,000. What is the monthly P&I payment?

A$2,988.75✓ Correct
B$3,985
C$2,656.67
D$3,318.75

Explanation

Down payment = $600,000 × 25% = $150,000. Loan amount = $600,000 – $150,000 = $450,000.

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