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A borrower has a $250,000 loan at 6% interest for 30 years. What is the approximate monthly interest payment in the FIRST month?

Loan Origination Activities · 27% of the SAFE exameasy

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Correct answer: $1,250.00

Monthly interest = (Loan Amount x Annual Rate) / 12 = ($250,000 x 0.06) / 12 = $15,000 / 12 = $1,250.00. This is the interest-only portion of the first month payment. The total P&I payment would be higher (approximately $1,498.88), but the INTEREST portion alone is $1,250.

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