Chp. 22 Quiz - Real Estate Math Flashcards
Beth is getting a $375,000 loan at 6.25% and will pay 2 discount points at closing. What will the effective interest rate be?
- 5%
* $375,000 x .01 = $3,750 each point x 2 points = $7,500 charge for the points. 2 points x 1/8 percent = 2/8 or .25 percent increase. 6.25% + .25% = 6.5% effective rate.
A rectangular parcel contains 2.5 acres of land and has a road frontage width of 150 feet, what is the depth of the property?
726 feet
Points that are paid at closing are typically equal to
1% of the loan amount.
If a property was purchased for $200,000 and appreciated 3% each year for 2 years, how much did the property appreciate after the first year?
$6,000
John and Trish obtain a $500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be $2,965. How much will their first month’s interest payment be?
$2,500
What would the asking price be for a rectangle lot that measures 900 feet wide by 300 feet deep based on $30 per front foot?
$27,000
Beth is getting a $375,000 loan at 6.25% and will pay 2 origination points at closing. What will the point cost be?
$7,500
How much would 3 points cost for a $250,000 loan?
$7,500
A trA triangular lot measures 220 feet wide (base) and 160 feet deep (height), what is the area of the lot? deep (height), what is the area of the lot?
17,600 square feet
*Triangle: Area = ½ base x height, so .5 x 220 x 160 = 17,600 square feet
If a property was purchased for $150,000 and appreciated 2% in 1 year, how much did the property appreciate?
$3,000
John and Trish obtain a $500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be $2,965. How much will their second month’s interest payment be?
$2,497.67
John and Trish obtain a $500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be $2,965. How much will their second month’s principal payment be?
$466.33
If 8 discount points were charged on a loan with a 6.75% interest rate, what would the percent yield be?
7.75%
Harry and Sally want to purchase a home, they have annual gross income of $60,000 and the loan payment they require is $1,650.00. Which loan would they most likely qualify for?
FHA
*Harry and Sally will probably qualify for an FHA loan, because their income ratio is higher than most other lenders allow. Amount of new house payment = $1,650 Gross monthly income = $5,000 ($60,000 ÷ 12) Income ratio = 33% ($1,650 ÷ $5,000)
Broker Jim sold a home for $225,500 at a commission rate of 7%. What will Jim’s commission be?
$15,785.00
