real estate math

Question 1

A vacant parcel is described in its listing as a rectangular lot measuring 300 feet deep and 150 feet wide along Main Street. The property is listed for $180,000.
Based on this information, what is the price per linear foot of road frontage?

Answer 1

$1,200 per foot
To calculate price per linear foot, divide the total price ($180,000) by the width of the lot along the street (150 feet).

Question 2

_________ = (loan amount ÷ home value) × 100
this is the formula for what

Answer 2

loan to value ratio

Question 3

loan amount x loan origination percentage
This is the formula for what equation

Answer 3

Loan origination fee

Question 4

Debt service = ___________ × 12

Answer 4

monthly payment

Question 5

how to you find a maximum allowable house payment

Answer 5

total gross income x the allowable DTI percent - related debts

Question 6

calendar year proration method

Answer 6

Let’s say a property has an annual property tax of $2,920. The seller owns the property for 100 days, and the buyer will own it for 265 days.
Daily cost: $2,920 / 365 = $8 per day.
Seller’s share: $8 * 100 days = $800.
Buyer’s share: $8 * 265 days = $2,120.