Math Formulas NC Real Estate Flashcards

Math Formulas NC Real Estate Flashcards Real Property Tax(Assessed Value / 100) X Tax Rate = Annual Taxes(Assessed Value / 1000) X Mill Rate = Annual Taxes Loan To ValueLA/Sale Price =LTV Loan Origination FeeRule of thumb is 1% of LA Excise TaxSale Price/$500=Tax Amount (no pennies, round up to next $500) Net operating income`CircleNOI------------------------------------------------Cap Rate (%) X Value Rectangular Survey SystemEach section has 640 acres36 squares in 1 townshipTo calculate acreage, multiply the denominators. 640/X= acres Cash Throw off/Equity Dividend RateCircleCTO----------------------------------------------------------Equit y Dividend rate (%) X Amt of Equity Finance FormulasLoan Amount (LA) X Interest Rate (R) = Annual Interest (AI)Daily Interest (AI/360)=Banker Days-30 days in a

monthInterest paid over life of loan:(PI) X # of payments =

Total PITotal PI payments-Original LA = Interest

PaidPrincipal & Interest Payments (Factors): (LA/$1000) X

Factor = Monthly PI GainPurchase Price+Allowable costs+Capital improvements-----------------------------------Adjusted BasisSales Price-Allowable closing costs---------------------------------Amount RealizedAmount Realized-Adjusted Basis----------------------------Capital Gain (or Loss) Calculating CommissionSale Price X Commission Rate = Commission Dollars Qualifying a BuyerFront ratios=Max PITI paymentBack ratios=Max PITI payment + RDConventional: 28/36FHA: 29/41VA: 41%GMI X 28% or 29% =Max PITI paymentGMI X 36% or 41% =Max PITI payment AND RD Payment THE BOXPGI-V&C=EGI-OE=NOI-DS=BTCF/CTO Discount PointEach point represents 1% of LA Loan AmortizationAI/ 12 (months)=monthly interestMonthly PI - Monthly Interest = PrincipalLA - P = New LA Estimate of Net to SellerMinimum Contract Price = Expenses/ (100%-comm.%)