PSI Exam: Real Estate Calculations Flashcards

PSI Exam: Real Estate Calculations Flashcards

at closing buyers oweclosing costs, lender fees, a portion of the upcoming years property taxes & insurance, recording fees, etc.transfer taxis applied when real property is sold assessed value=value x assessment ratio net to seller =sales price x percent to seller amount paid for points=loan amount x number of points % accrued prorated itemsamounts allocated to both buyer & seller that havent yet been paid but will be paid by the buyers after closing (items are credited to the buyer & debited to the seller) equityis the amount of value or interest a homeowner has in a property less debts against the property depreciation in valuereduces equity square feet per acre43,560 loan balanceannual interest / interest rate prepaid prorated itemsamounts allocated to both buyer & seller that were paid by the seller before closing (items are credited to the seller and debited to the buyer) prorationis calculation what "pro-rata" amount is owed by (or to) each party at closing for expenses or income generated by the real estate sale percent to seller =100% of sale price -commission % calculate prorations with the sellerresponsible for expenses & income on closing day amortized loanare those that are paid off over time amount of annual interest =loan balance x interest rate feet in a mile5,280 annual property taxes =assessed value x tax rate mortgage payments includePITI (principal, interest, taxes, insurance) each discount point costs1% of the loan amount, and means a discount of 0.25% off the mortgage rate appreciation in valueincrease equity mortgage/deed of trust recording taxis a tax on the recordation of the mortgage/deed of trust & is based on the loan amount LTVR=(loan amount/value) x 100 equity=value - amount owed total amount paid on a loan=monthly payment x total number of payments Loan to Value Ratioits the ratio of the loan amount to the property value, where value is the lesser of either appraised value or sales price total loan interest amount=monthly payment x total number payments- original loan value interest rate=annual interest / loan balance