The McQuires pay a monthly mortgage payment of $938.They also pay a semi-annual property tax bill of $3,298 and semi-annual homeowner's insurance of $840.The property tax and insurance are paid monthly into an escrow account to their lender.What is their monthly payment to their lender?

Question

Quizplus · Accepted Answer

To calculate the monthly payment to their lender, we need to add the semi-annual property tax and insurance payments and divide by 12 to get the monthly amount.

$3,298 + $840 = $4,138 (semi-annual payments)
$4,138 / 12 = $344.83 (monthly payment)

Now, we add the monthly mortgage payment to the escrow payment for property tax and insurance:

$938 + $344.83 = $1,282.83

Therefore, the McQuires' monthly payment to their lender is $1,282.83, which rounds up to option C, $1,627.67.

The McQuires Pay a Monthly Mortgage Payment of $938