Chapter 10. Flashcards
Acre
A measure of land equaling 43,560 square feet.
Commission
A sum due a real estate broker for services in that capacity
Front Foot
Refers to the length of a parcel facing a street.
Gross Income
Total income from property before any expenses are deducted.
Net Income
The result of subtracting expenses from income.
Hectare
Equal to 10,000 square meters.
Interest
A fee paid by the borrower of a loan as a form of compensation for the use of money
Point
Equal to one percent of a loan amount. For example, 1 point on a $100,000 is equal to $1,000.
Principal
A sum of money lent or invested on which interest is paid.
Real Property Tax Rate
The tax levy divided by the total taxable assessed value of a taxing jurisdiction, usually expressed in dollars per thousand, dollars per hundred, or mills.
Principal
A sum of money lent or invested on which interest is paid.
What is the interest rate on an interest only loan, if the principal balance is $574,000, and the annual payment after year 1 is $24,108…?
4.2 (Percent %)
What is the area of a rectangle that measures 3 yards x 18 yards…?
54 sq. yards
If a buyer is purchasing a house for $325,000, how much is paid in closing costs if the closing costs amount to 5.5 points…?
$17,875 (Dollars)
What is the area of a triangle with a base dimension of 16’ and a height of 7’…?
56 sq.ft.
What is the perimeter of a rectangular lot measuring 48’ x 97’…?
290’ (feet)
1 square mile is equal to how many acres…?
640 acres
How many acres are in a lot that measures 145’ x 450’…?
1.5 acres
How many square feet are in one acre…?
43,560 sq.ft.
1 square mile is equal to how many acres…?
640 acres
How many acres are equal to 1 hectare…?
2.47 acres
What is the mortgage recording tax paid on a property that sold for $215,000, assuming there is a tax rate of $2.05/$100 of the loan amount and the bank uses an 75% LTV…?
First, determine the loan amount. Since the bank used an 75% LTV, multiply the sales price of $215,000 by 75%. This equals $161,250. Next, divide the loan amount by $100. $161,250 / $100 = $1,612.50. Finally, multiply $1,612.50 by $2.05. This equals $3,306.
What is the interest rate on an interest only loan, if the principal balance is $574,000, and the annual payment after year 1 is $24,108…?
To answer this question, you must simply divide the amount paid in interest by the loan amount. $24,108 / $574,000 = 0.042, or 4.2%.
If a buyer obtains a mortgage for $715,000, how much is owed to the bank if the bank demands a loan origination fee of 2 points…
Since 2 points equals 2%, you must multiply the loan amount by 2%. $715,000 x 0.02 = $14,300.