A buyer obtains a 30-year fixed mortgage of $300,000 at 6% interest. What is the first month's interest payment?

Monthly interest = (Loan Balance × Annual Rate) ÷ 12. So $300,000 × 0.06 ÷ 12 = $300,000 × 0.005 = $1,500. The first month's interest is $1,500. The total monthly payment of principal and interest (P&I) on a 30-year $300,000 loan at 6% is roughly $1,799, of which $1,500 is interest and about $299 is principal in the first month. Over time, more of each payment goes to principal and less to interest as the balance amortizes. By month 240 of a 30-year loan, the split inverts. Real estate exams often test simple interest calculations like this; mortgage payment calculations using amortization tables are more complex but less common on the salesperson exam. Always remember: monthly rate = annual rate ÷ 12.