RE Math Flashcards
is calculated by dividing the home’s price by its square footage to come up with a price-per-square-foot number. For example, if the price of the home is $120,000 and it is 1,500 square feet, the price per square foot is $80:
$120,000 ÷ 1,500 = $80
You can also use this formula to calculate a comparable home’s estimated value when you know its square footage and the price per square foot. For example, a 1,500-square-foot comparable home that is $100 per square foot would be $150,000:
1,500 x $100 = $150,000
Price per sq ft
length x width
area
43,560 square feet
acre
2.47 acres
hectare
the linear portion that abuts a waterway, highway, or street.
front foot
(1/2 * base) * Height
area of a triangle
4 times the length
square perimeter
2length +2width
Rectangle perimeter
add the lengths of the sides
any shape other than square or rectangle
LTVR = (loan amount ÷ home value) × 100
loan to value ratio (LTVR)
Loan origination fee = loan amount x loan origination percentage
loan origination fee
appraised value - amount owed=equity
equity
Loan amount × points = points amount
points
(loan amount ÷ 1,000) × factor = monthly payment
Amortization
multiply the monthly payment by 12
debt service
The down payment amount includes the earnest money deposit, closing costs, points, and the like.
down payment
Annual payment ÷ loan balance = interest rate
intrest rate
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What’s the total amount of interest he’ll pay over the course of the loan?
$608,292.40
First, multiply the monthly payment by the total number of payments. Then subtract the original loan value: $3,078.59 x 360 = $1,108,292.40 ‒ $500,000 = $608,292.40.
monthly debt obligations ÷ monthly gross income
debt to income ratio (housing ratio)
loan balance x interest
annual interest amount
annual interest amount / loan balance
interest rate
Assessed value × tax rate
annual property tax
Appraised value × assessment ratio
assessed value
(Appraised value × assessment ratio) × tax rate
property tax
Value of the property x transfer tax rate
transfer tax amount
Amount financed x mortgage recording tax rate
mortgage tax amount
360-day statutory (aka “banker’s”) year (30 days x 12 months)
statutory year
365-day calendar year
calendar year
sales price x % to seller (100% - commission)
net to seller
