Virginia Real Estate Exam Practice Question
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. How many payments will he make over the course of the loan?
Correct Answer: D
Rationale: The loan is a standard 30-year mortgage, which means it is structured to be paid off over 30 years. Since there are 12 months in a year, the total number of monthly payments is calculated as 30 years multiplied by 12 months per year, resulting in 360 payments.
Option A (180) incorrectly suggests a 15-year loan, which does not apply here. Option B (240) implies a 20-year loan term, also incorrect. Option C (30) misrepresents the number of payments, as it only counts the years, not the monthly payments. Therefore, 360 is the accurate total of monthly payments for this 30-year mortgage.
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