Question

In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim’s home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?
a.
$7.69
b.
$76.86
c.
$92.35
d.
$922.35

Answer 1

First find the annual premium: (279,500 ÷ 100) × $0.33 = 2,795 × 0.33 = $922.35 per year.
Divide by 12 for the monthly amount: 922.35 ÷ 12 = $76.86.

Answer: b. $76.86