# Chp. 22 Quiz - Real Estate Math Flashcards

1
Q

Beth is getting a \$375,000 loan at 6.25% and will pay 2 discount points at closing. What will the effective interest rate be?

A
1. 5%
* \$375,000 x .01 = \$3,750 each point x 2 points = \$7,500 charge for the points. 2 points x 1/8 percent = 2/8 or .25 percent increase. 6.25% + .25% = 6.5% effective rate.
2
Q

A rectangular parcel contains 2.5 acres of land and has a road frontage width of 150 feet, what is the depth of the property?

A

726 feet

3
Q

Points that are paid at closing are typically equal to

A

1% of the loan amount.

4
Q

If a property was purchased for \$200,000 and appreciated 3% each year for 2 years, how much did the property appreciate after the first year?

A

\$6,000

5
Q

John and Trish obtain a \$500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be \$2,965. How much will their first month’s interest payment be?

A

\$2,500

6
Q

What would the asking price be for a rectangle lot that measures 900 feet wide by 300 feet deep based on \$30 per front foot?

A

\$27,000

7
Q

Beth is getting a \$375,000 loan at 6.25% and will pay 2 origination points at closing. What will the point cost be?

A

\$7,500

8
Q

How much would 3 points cost for a \$250,000 loan?

A

\$7,500

9
Q

A trA triangular lot measures 220 feet wide (base) and 160 feet deep (height), what is the area of the lot? deep (height), what is the area of the lot?

A

17,600 square feet

*Triangle: Area = ½ base x height, so .5 x 220 x 160 = 17,600 square feet

10
Q

If a property was purchased for \$150,000 and appreciated 2% in 1 year, how much did the property appreciate?

A

\$3,000

11
Q

John and Trish obtain a \$500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be \$2,965. How much will their second month’s interest payment be?

A

\$2,497.67

12
Q

John and Trish obtain a \$500,000 mortgage loan for 20 years at a fixed rate of 6%. The amortization calculation indicates their monthly payment to be \$2,965. How much will their second month’s principal payment be?

A

\$466.33

13
Q

If 8 discount points were charged on a loan with a 6.75% interest rate, what would the percent yield be?

A

7.75%

14
Q

Harry and Sally want to purchase a home, they have annual gross income of \$60,000 and the loan payment they require is \$1,650.00. Which loan would they most likely qualify for?

A

FHA

*Harry and Sally will probably qualify for an FHA loan, because their income ratio is higher than most other lenders allow. Amount of new house payment = \$1,650 Gross monthly income = \$5,000 (\$60,000 ÷ 12) Income ratio = 33% (\$1,650 ÷ \$5,000)

15
Q

Broker Jim sold a home for \$225,500 at a commission rate of 7%. What will Jim’s commission be?

A

\$15,785.00

16
Q

If a property was purchased for \$200,000 and appreciated 3% in 1 year, what is the property’s appreciated value at the end of the year?

A

\$206,000

17
Q

A property has an assessed rate of \$69,100. What are the annual taxes if the rate is \$2.05 per \$100?

A

\$1,416.55