Real Estate Math

A Wisconsin homebuyer's annual property taxes are $5,400 and annual insurance is $1,200. How much per month does the lender collect for escrow reserves (PITI split)?

A$450
B$500
C$550✓ Correct
D$600

Explanation

Monthly escrow = ($5,400 + $1,200) / 12 = $6,600 / 12 = $550. Using the values given ($5,400, $1,200), apply the appropriate formula..

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