Question

Your parents are buying a house for $187,500. They have a good credit rating, are making a 20% down payment, and expect to pay $1,575/month. The interest rate for the motrgage is 4.65%. What must their realized income be before each month and how much interest is accrued at the end of the second month?

Answer 1

You did not state the time of that mortgage. (10 years, 20 years, etc?)
Anyway, the house is $187,500 and after a 20% down payment it is $150,000
If the interest is 4.65% and the payment is $1,575 per month then the time of the mortgage would be about 10 years (actually it calculates to 9.923 years).
I don't know what their realized income must be.
When you ask how much interest is accrued, do you mean how much equity has been accrued or how much interest has been paid?