Real Estate Math

A Washington homeowner refinances a $380,000 mortgage to a new $400,000 mortgage (cash-out refi). The new loan has a monthly P&I factor of $6.65/$1,000 at 7% for 30 years. What is the new monthly P&I payment?

A$2,660✓ Correct
B$2,527
C$2,795
D$2,926

Explanation

Monthly P&I = ($400,000 ÷ $1,000) × $6.65 = 400 × $6.

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