Florida Real Estate 20 Math Questions, Explained Flashcards

Florida Real Estate 20 Math Questions, Explained Flashcards A lender has been offered an annual percentage rate of 5%. The buyer has decided to purchase discount points.The new effective yield of the loan is 5 ¾%. How many points did the buyer purchase?b, To raise the effective yield of the loan 3/4 % the buyer would need to purchase 6 points. This is because if you purchased 6 points you would put the 6 over 8 (6/8) and reduce it to 3/4.A man can borrow $203,000 to purchase a house, and this is 3.5 times his salary. What is his annual salary?b, 203,000 / 3.5 = 58,000 The scheduled date for closing a duplex is June 15. Rent collected on the first of each month is $600 per unit. Day of closing belongs to the buyer. How will the proration be entered on the closing disclosure?a, 1200 / 30 (months in June) = 40 (cost of one day)40 x 16 (buyer owns the house for 16 days) = 640. Debit seller 640 Credit buyer 640 If a lot frontage is 250 feet, street paving costs are $20.00 per running foot, and the city will pay 40% of the paving costs, what will be the assessment to the property owner?a, 250 x 20.00 = 5,0005,000 x .60 (this is how much the homeowner pays) = 3,0003,000 / 2 = 1,500 What was the sales price of a new home if the documentary stamp taxes on the deed were $4,515?a, Use the substitution method and do the doc stamp on the deed formula. 645,000 / 100 = 6,4506,450 x .70 = 4,515 (once you have a match, that is the answer) An appraiser is appraising a three-bedroom house with a fireplace. The comparable has four bedrooms and no fireplace. What is the adjusted sales price of the comparable if the sales price was $850,000 and a bedroom is valued at $20,000 and the fireplace is valued at

$15,000?

a, 850,000 - 20,000 (bedroom) = 830,000830,000 + 15,000 (fireplace) = 845,000 A woman owed the NW1/2 of the NW1/2 of the S1/2 of a section. What would she own if she sold N1/2 of it?a, 640 / 2 / 2/ 2 = 80 Acres80 / 2 = 40 A buyer has applied for a loan. The purchase price of the property is $650,000. If the borrower has $250,000 for a down payment, what will the loan to value ratio be?

a, Loan to value formula is: Loan / ValueIn this problem the

value is 650,000. The loan is what the person is borrowing.If they have 250,000 then they only need to borrow

400,000. Then use the formula: 400,000 / 650,000 = 61.5%

What is the gross rent multiplier of a property that sold for $600,000 and rents for $60,000 annually?a , Gross rent multiplier formula is sales price / monthly rent. This problem gives us annual rent. We must first divide the 60,000 by 12 to get the monthly rent. 60,000 / 12

= 5,000. Then we use the formula: 600,000 / 5,000 = 120

A parcel of land sold for $900,000 based on a rate of $2.50 per square feet. How many square feet did it contain?a, 900,000 / 2.50 = 360,000 A man purchased a home for $287,500, made a down payment of 25%, and secured a new conventional mortgage loan for the balance. Calculate the intangible taxes due.b, n this problem the buyer is borrowing 75% of 287,500287,500 x .75 = 215,625 (loan amount)215,625 x

.002 = 431.25

A residential zoning category requires at least 15,000 square feet per lot. The developer is reserving 25% of the land to streets. The tract of land for development consists

of 200 acres. How many residential lots are available for development?a, 200,000 x 43,560 = 8,712,0008,712,000 x .75 (useable space) = 6,534,0006,534,000 / 15,000 = 435

What is the total amount of the state documentary stamp taxes on the note and intangible tax on the mortgage if a property sold for $180,000 with a 75% mortgage?a, This one is tricky because you have to figure out the loan amount before you can compute the doc stamps on the note and intangibles. You can use the loan to value formula.Loan / Value = Loan to Value ratio180,000 x .75 = 135,000The loan is for 135,000 now we do the doc stamps on the note and intangibles and add them together.135,000 / 100 = 1,350 x .35 = 472.50135,000 x .002 = 270472.50 +

270 = 742.50

The broker agreed to pay his sales associate 45% of the total commission. The property sold for $320,000 and the commission rate was 7%. The property was sold "in house". What was the broker's share of the commission?b, 320,000 x .07 = 22,40022,400 x .55 (broker's share) =

12,320

If a capitalization rate of 10.5% is used, what is the market value of an investment property assuming a net income of

$8,424?

a, I R V problem8,424 / .105 = 80,228.57 Monthly mortgage payments of $450 have been paid for 15 years. The original mortgage amount $45,000. After 15 years, 50% of the loan has been paid. What is the total amount of interest paid to date?a, Tricky question! The buyer has paid 450 x 12 = 5,400 for

15 years: 5,400 x 15 = 81,000The buyer has paid 81,000 in

15 years. The questions states that half of the 45,000 loan has been paid off. 45,000 / 2 = 22,50022,500 has been paid on the loan. But the buyer has paid 81,000.81,000 - 22,500 = 58,500 (this is the amount of interest the buyer paid) What is the tax levy for a house that was assessed at $485,000 with a millage rate of 21.4 mills?b, 485,000 x .0214 = 10,379 A property is rectangular and measures 500' by 620' lineal feet. How many acres does it contain?b, 500 x 620 = 310,000310,000 / 43,560 = 7.11 Acres A building is 5 stories high and each floor is 100x20. If you wanted to put bins in all this space but couldn't use 25% of each floor, how many bins could you put in if each bin was 10x10?b, 100 x 20 = 2,0002,000 x 5 = 10,00010,000 x .75 (this is the amount of space you CAN use) = 7,5007,500 / 100 (each bin is 10 x 10) = 75 The county property appraiser has assigned an assessed value of $117,500. The property is homesteaded. The

county charges the following millage rates: city 10 mills,

county 10 mills, and school district 6 mills. Calculate the property taxes?a, 117,500 - 50,000 = 67,500 x .010 = 675 (city taxes)117,500 - 50,000 = 67,500 x .010 = 675 (county taxes)117,500 - 25,000 = 92,500 x .006 = 555675 + 675 +

555 = 1,905