A buyer in Ohio obtains a mortgage for $200,000 at 6% annual interest. What is the monthly interest payment for the first month?
Correct Answer
D) $1,000
Annual interest = $200,000 × 6% = $12,000. Monthly interest = $12,000 ÷ 12 = $1,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
More Oh Financing Closing Questions
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A buyer purchases a home in Ohio for $240,000 with a 20% down payment. What is the loan amount?
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In Ohio, after the deed is recorded, the county recorder assigns the document a recording reference number. This number is important because it:
In Ohio, the conveyance fee is paid at the time of:
- → In Ohio, property tax prorations at closing are typically calculated based on:
- → In Ohio, the conveyance fee (transfer tax) on real estate transfers is calculated at a base rate of:
- → In Ohio, the conveyance fee statement (DTE 100 form) must be filed with the county auditor when transferring real property. This form requires disclosure of:
- → In Ohio, the real estate closing process is commonly referred to as:
- → In many Ohio counties, closings are conducted by title companies or attorneys. Which statement about attorney involvement in Ohio closings is MOST accurate?
- → In Ohio, certain counties utilize the Auditor's Transfer Acknowledgment process. When submitting a deed for recording, the conveyance fee statement (DTE form) must accurately state the consideration. If the stated consideration is found to be fraudulently understated to reduce the conveyance fee, the seller may face:
- → In Ohio, some counties have adopted the Torrens system of title registration in addition to the standard recording system. Under the Torrens system, title to property is established by:
- → Under Ohio closing practices, all of the following documents are typically executed or delivered at closing EXCEPT:
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Previous Question
An Ohio property sells for $320,000. The state conveyance fee is $1.00 per $1,000 and the county charges the maximum permissive fee of $0.30 per $1,000. What is the total conveyance fee?
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An Ohio property closes on September 15. Annual property taxes are $5,400 and are paid in arrears. Using a 360-day year, what is the seller's property tax proration credit to the buyer (January 1 through September 15)?