T MATH Flashcards Preview

NY Real Estate > T MATH > Flashcards

Flashcards in T MATH Deck (20):
0

Using the percent formula, part equals percent times whole, the part goes on top of the T, the percent goes on the bottom left or right in the whole goes opposite the percent.

"T" Math

1

Sales Price X C Rate = Commission
Commission ➗ C Rate = Sales Price
Commission ➗ Sales Price = Commission Rate

Figuring commission through T Math

2

Joelle sells the house for $120,000, his commission rate is 6% how much commission will he receive?


120,000 x 6% = 7,2000

3

Broker Brenda sold a house for 70,000. The seller paid $4900 in commission. What was Kendra's commission rate?

4,900 ➗ 70,000 = 7%
Com. Sales$ Com Rate

4

Broker David sold the house for $186,000 and was paid a commission of 6.5%. How much did he earn?

$186,000 x 6.5%(.065) = 12,090
Sales $ C Rate Commission

5

Broker Gabriele earns a total of $16,920 on a 6% commission. What was the sale price of the property she sold?

$16,920 ➗6%(.06) = $282,000
Commission C Rate Sales $

6

On this schedule the commission rate decreases as the sales price of the home increases.

Commission schedule

Ex. Broker Bill charges:

•8% commission on the first $100,000
•7% on the next $50,000 and
•5% on any amount over $150,000

7

How much will Broker Bill $310,000 sale if he charges a percent on the first $100,000, 7% on the next $50,000 and 5% on anything above $150,000?

Brokers Bill commission schedule would earn him $19,500 on a $310,000 sale.

(.08 x $100,000) = $8,000
(.07 x $50,000) = $3,500
(.05 x $160,000) = $8,000

Total 19,500

8

How much would broker Ted earn on $465,000 sale if he charges a flat fee of $20,000 for the first $300,000 and 8% for anything above that?

$33,200.
He made 8% on $165,000 = $13,200
and $20,000 or $300,000= $20,000
For a combined total of $33,200

9

Rebecca needs to know that at least $112,000 from the sale of her house. It's sold for $124,500 and her broker received an 8% commission. Assuming all other closing expenses were $1500, did Rebecca make her necessary Seller's share?

Use T Math

Yes!!!
$124,500 x8% (.08) gives you the brokers commission = $9,960
124,500 - brokers commission ($9,960)
= $114,540
-$1,500 for closing expenses
Gives us $113,040.
$1,040 above what was needed to make the sellers share!

10

A great strategy for three-part equations is called

T- Math

11

To find the number on top of the T you would:

Multiply the two numbers on the bottom

12

If you know the number on top I need to find out one of the bottom numbers:

Divide the number on top by the no number on the bottom

13

CALCULATE THE INTEREST RATE

If you know the annual interest paid is $585, and the loan amount (principal) is $4,500, to calculate the interest rate, take the amount of interest paid ($585) and divide by the loan amount ($4,500).
$585
$4500(p)T %(?)

$585➗$4,500 equals 0.13 or 13%

14

The loan amount (principal) is $100,000 and the interest rate is 8%. What is the annual interest paid?

$8,000 to calculate the annual interest you take $100,000 (p) and multiply by .08 (8%)(interest-rate).

15

To find the down payment for a conventional loanfor a house with the sales price of $80,000:



$80,000 x 80% = 64,000

If you subtract the loan amount from the sales price you can determine that the buyer would need a down payment of $16,000.


$64,000(p)
80% (I)T$80,000 (sale pr)
LTV

16

If the lender would be willing to except and LTV of 90% on an $80,000 property, how much is the lender willing to lend?


?
$80,000(P) T 90% LTV

$72,000
You multiplied $80,000 X 90%!

17

What is the required down payment if the purchase price is $68,000 and the loan to value ratio is 80%?

?
$68,000(P) T 80%(I)

$13,600

$68,000 X 80%

18

A borrower is buying a house for $150,000. She provides a down payment of $10,000. If she pays to discount points (equal to 1% a piece or 2%) what is the total cost of the points?

$2,800

$140,000 (because of the $10,000 down payment that she made) X 0.02 = $2,800

19

Lester steeple monthly income is $6800. Having money pays: $485 car payment, $200 revolving credit payment, and $1500 alimony. Using ratios of 29% and 41%, what is the maximum monthly mortgage payment he would qualify on FHA mortgage loan?

$603.

Using the payment to income ratio of 29% for an FHA loan, we get $1972. (before debts) (6800 X 29% =$1972.

But using the total debt service ratio of 41% for this loan, we find: $6800 (income) multiplied by 0.41, which equals $2788(before debts). Then you subtract monthly debts
485+200+1500= $2185 - 2788 = $603