RE Math

Question 1

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

Answer 1

Price per sq ft

Question 2

length x width

Answer 2

area

Question 3

43,560 square feet

Answer 3

acre

Question 4

2.47 acres

Answer 4

hectare

Question 5

the linear portion that abuts a waterway, highway, or street.

Answer 5

front foot

Question 6

(1/2 * base) * Height

Answer 6

area of a triangle

Question 7

4 times the length

Answer 7

square perimeter

Question 8

2length +2width

Answer 8

Rectangle perimeter

Question 9

add the lengths of the sides

Answer 9

any shape other than square or rectangle

Question 10

LTVR = (loan amount ÷ home value) × 100

Answer 10

loan to value ratio (LTVR)

Question 11

Loan origination fee = loan amount x loan origination percentage

Answer 11

loan origination fee

Question 12

appraised value - amount owed=equity

Answer 12

equity

Question 13

Loan amount × points = points amount

Answer 13

points

Question 14

(loan amount ÷ 1,000) × factor = monthly payment

Answer 14

Amortization

Question 15

multiply the monthly payment by 12

Answer 15

debt service

Question 16

The down payment amount includes the earnest money deposit, closing costs, points, and the like.

Answer 16

down payment

Question 17

Annual payment ÷ loan balance = interest rate

Answer 17

intrest rate

Question 18

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?

Answer 18

$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.

Question 19

monthly debt obligations ÷ monthly gross income

Answer 19

debt to income ratio (housing ratio)

Question 20

loan balance x interest

Answer 20

annual interest amount

Question 21

annual interest amount / loan balance

Answer 21

interest rate

Question 22

Assessed value × tax rate

Answer 22

annual property tax

Question 23

Appraised value × assessment ratio

Answer 23

assessed value

Question 24

(Appraised value × assessment ratio) × tax rate

Answer 24

property tax

Question 25

Value of the property x transfer tax rate

Answer 25

transfer tax amount

Question 26

Amount financed x mortgage recording tax rate

Answer 26

mortgage tax amount

Question 27

360-day statutory (aka “banker’s”) year (30 days x 12 months)

Answer 27

statutory year

Question 28

365-day calendar year

Answer 28

calendar year

Question 29

sales price x % to seller (100% - commission)

Answer 29

net to seller