Math Flashcards
Discount Point
1 discount point equals 1% of loan amount
It buys down the interest rate by 1/8th percent
Often used as an incentive
Loan amount x the number of discount points = cost of discount points
IRV
INTEREST = Rate x Value
Amortization
loan is paid off by equal, periodic payments
early on you pay a lot of interest, and little principal
paying interest based on balance of mortgage that month
to calculate must be given monthly payment amt, principal balance, interest rate
- mortgage amt x interest rate = annual interest
- annual interest / 12 = monthly interest
- monthly payment - monthly interest = principal paid that month
- Balance of the loan - principal paid = new principal balance
for 2 or 3 months, repeat step one with new principal balance
Advertising
- must have name of employing company
- property owners must consent to advertising
- all contracts must have an end date
Holdover Date
-a provision entitling the broker to a commission after the expiration date
Sign crossing
-cant steal someone elses client when they already have a client
Legal Counsel
-before closing, broker should recommend the examination of title by legal counsel
Earnest Money
when a contract fails thru no fault of buyer, the broker has no right to the earnest money
broker must return money
Security Deposit
owner can hold security rather than prop manager, but has to have written authorization
Measuring Homes
- not required to be measured by broker
- must disclose where measurement if from
Ad Valorem
additional value
property taxes are based on value of property
Market Value
Estimate of value of property
Assessment Rate
a percentage used by taxing authority to adjust market value to assessed value
Assessed Value
market value x assessment rate = assessed value of house for tax purposes
Mill
tax rate
1/10 of 1 cent = 1 mill
move decimal three to the left
