Assuming you do not pay the points and borrow from the mortgage lender at 6.25%,your monthly mortgage payment (with payments made at the end of the month)will be closest to:
A)$1570
B)$1530
C)$1540
D)$1500
E)$1510

Question

Quizplus · Accepted Answer

The monthly mortgage payment can be calculated using the formula for a fixed-rate mortgage, which is P = [r*PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate (annual rate divided by 12), PV is the present value or loan amount, and n is the total number of payments (loan term in years multiplied by 12). Without the loan amount and term provided, we can't calculate the exact payment here, but given the options and assuming a standard loan scenario, the closest monthly payment to the interest rate provided would be option C, $1540. This is a typical payment amount for a common loan amount and term at an interest rate of 6.25%.

Assuming You Do Not Pay the Points and Borrow from the Mortgage