Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam. Test your knowledge with quizzes and gain valuable insights into real estate concepts, regulations, and practices essential for your success in the industry.

Practice this question and more.

If the bi-weekly mortgage payment factor is 3.154884, what is the bi-weekly payment for a $412,000 mortgage with a 20-year amortization and a 5.5% interest rate?

$1,159.27
$1,299.81
$1,545.59
$2,599.62

The correct answer is: $1,299.81

To determine the bi-weekly payment for a $412,000 mortgage using the provided mortgage payment factor, you multiply the mortgage amount by the bi-weekly payment factor. The bi-weekly mortgage payment factor of 3.154884 indicates how much a borrower must pay for every $1,000 borrowed. The calculation is done as follows: 1. First, divide the mortgage amount by 1,000 to get the number of thousands: \[ 412,000 / 1,000 = 412 \] 2. Then, multiply this number by the bi-weekly payment factor: \[ 412 \times 3.154884 = 1,299.81 \] This calculation yields a bi-weekly payment of $1,299.81, affirming that this is indeed the correct amount that needs to be paid bi-weekly on a $412,000 mortgage with the specified terms.