Chapter 2: Real Estate Math Flashcards
(18 cards)
A _________ number is any number between zero and infinity. _________ numbers are not fractions or negative numbers.
-Can also be called positive integers or basic numbers
whole number
A ________ is part of a whole — a f_______ is not a whole number.
F__________ are made up of both a:
Numerator
Denominator
examples: 1⁄2, 2⁄3, 5⁄7, 3⁄4.
fraction
The number on top of a fraction’s division line or the number of the parts with which you are working; also called the dividend.
example: In the fraction 2⁄5, 2 is the n__________.
Numerator
The number below the fraction’s bottom line or the number of equal parts in total; also called the divisor.
Example: There are 3⁄8 pizza slices left in the break room. The number 8 is the d___________ of this fraction.
Denominator
I________ f_________ occur when the value of the numerator (the number on top) is greater than the denominator (the number on the bottom).
examples: 13⁄8, 7⁄4, 5⁄3, 8⁄6.
Improper Fractions
A m_______ n_______ is a number consisting of a whole number and a fraction.
example: 5 1⁄2, 3 4⁄5, 1 2⁄3, 4 1⁄3
mixed numbers
A d_______ is a fraction whose denominator is a power of ten and whose numerator is expressed by figures placed to the right of a decimal point. In other words, it’s a number that involves a decimal point.
example: 0.3, 0.72, 1.5, 3.26
decimal
The quantitative relation between two numbers is called a r______.
Ratios and Children
My kid tells the truth, as opposed to lying, at a 2:1 ratio.
example
1:2, 4:3, 5:12, 1:6 are all ratios.
ratio
A p_________ is a fraction or ratio with a denominator of 100 that is usually written as just the numerator and a % symbol.
The following phrases involve a percentage:
A large percentage of licensed real estate agents in Texas are commercial.
Only a small percentage of Texas real estate transactions involve subagents.
percentage
A financial gain. Making more money selling a product than was spent buying or producing the product.
P_______
Profit
Making less money selling a product than was spent buying or producing the product.
L____
Loss
A m________ is a secured loan that is tied to real estate, where the borrower has to pay the money back to the lender on a set schedule and amount of payments. M_______ are also considered:
Liens against property
Claims on property
EXAMPLE
A borrower put down a 20% down payment on a $100,000 house. They got an $80,000 m_________ from their bank for the other 80% of the house price.
mortgage
The amount lent to a borrower to purchase a house — the borrower pays the lender interest in exchange for the p________.
Here are two situations that involve a mortgage or loan and p________:
Shane is paying 4.3% interest on his $250,000 loan. The p________ of the loan is $250,000.
The more I pay on my mortgage every month, the more money I’m able to pay back on the p__________.
principal
Money repaid regularly at a specified rate as compensation for money lent is called i________.
Here are two situations that involve a loan and i________:
Shane is paying 4.3% interest on his $250,000 loan.
I’m going to loan you the money, but you’ll have to pay me back with i________.
interest
A d_____ p________ is the initial payment made when buying something on credit; a d_____ p_______ is paid directly by the buyer to the seller. The standard d_____ p______ is 20% of the overall house price, and while a 20% d_____ p_______ is recommended, it is not required. The m_______ d_____ payment required by mortgage lenders is 3% of the house’s price.
EXAMPLE
Geni told me she put down a 20% d_____ p_______ on her $200,000 house, so I know she put down $40,000 as her d______ p________.
down payment
A___________ is the repayment of a loan over time in equal installments that include principal and interest.
Amortization Schedule
After closing on her house, Audrey’s lender sent her the amortization schedule of her mortgage payments, including how much of each monthly payment would go to principal and how much of each payment would go to interest. Unless you plan on paying off your mortgage immediately or have an interest-only loan, you’ll be paying off your principal via an amortization schedule.
amortization
