Finance

A Washington homebuyer obtains a 30-year fixed mortgage at 7% for $450,000. The monthly P&I payment factor for $1,000 at 7% for 30 years is approximately $6.65. What is the monthly P&I payment?

A$2,747
B$2,992
C$3,190
D$2,993✓ Correct

Explanation

Monthly P&I = (Loan ÷ $1,000) × payment factor = ($450,000 ÷ $1,000) × $6.65 = 450 × $6.65 = $2,992.50 ≈ $2,993.

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