Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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With a $230,000 mortgage at 5.5% interest over 20 years, and a monthly payment factor of 6.843913, what is the monthly payment?

$1,054.17
$1,574.10
$786.16
$1,261.40
$999.44
$1,675.23

The correct answer is: $1,574.10

To calculate the monthly mortgage payment, you can use the formula: Mortgage Payment = Mortgage Amount / Payment Factor. In this case: Mortgage Amount = $230,000 Interest Rate = 5.5% Loan Term = 20 years Monthly Payment Factor = 6.843913 Plugging in the values: Monthly Payment = $230,000 / 6.843913 = $33,620.96 / 12 = $1,104.25 Therefore, the correct answer is $1,104.25, which corresponds to option B: $1,574.10.