Real Estate Calculations Flashcards
Define the Load-to-value (LTV) ratio
the percentage of a property’s value the bank loaned/will loan on. The ratio of the loan amount to the property’s value
The formula for LTV is:
(loan amount / value) x 100
Define discount points in regards to loans
pre-paid interest paid by or on behalf of borrowers at the beginning of the loan to reduce the monthly mortgage payments
Discount points are ____% of the loan amount.
1
As a thumb rule, one point purchased results in the interest rate falling ___% percent.
.25
Amount paid for points is figured by:
loan amount x number of points, followed by a % sign.
The largest source of funding for local service like schools, roads, and police and fire protection are:
property taxes
Calculation property tax requires knowing the ____
appraised value, tax assessment ratio, and tax rate.
Tax rates are expressed as ____
rate per dollar amount of value
Accrued items are amounts allocated to both the buyer and seller that ______ been paid. They are _______
haven’t been paid
credited to the buyer
debited to the seller
Prepaid items are amounts allocated to both the buyer and seller that ______ been paid.
They are _____
have been paid by the seller
credited to the seller
debited to the buyer
per diem rate is the ______
amount to be prorated
Transfer tax is applied when _____
real property is sold
A Mortage/deed of trust recording tax is a
tax on the recordation of the mortgage/deed of trust and is based on the sales price
Amortized loans are
those that are paid off over time.
