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Math Quizzes of Real Estate Texas, Quizzes of Mathematics

Math Quizzes of Real Estate Texas

Typology: Quizzes

2019/2020

Uploaded on 06/07/2025

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vivian-pham-realtor-agent 🇺🇸

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MATH PRACTICE EXAM 2
Name:______________________________________
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MATH PRACTICE EXAM 2

Name:______________________________________

**- All calculations utilize the 30 Day Month/360 Day Year Method

  • All costs per period have been rounded to 2 decimal places ($3.66 per day) for each**

time period (Day, Month etc)

- You will need to download a copy of the blank Closing Worksheet to complete this test 1. Sam and Betty want to net $175,000 from the sale of their house to purchase a retirement home. The agent has estimated closing expenses they will pay at $2,435, along with a loan payoff of $53,192. Sam and Betty will pay the agent a 6% commission. What should be the selling price of Sam and Betty’s house?

A. $188, B. $188, C. $244, D. $245,

2. The terms of a lease call for the tenant to pay $1,650 per month and 4 1/2% of gross sales exceeding $750,000 per year. Assuming the tenant paid $29,925 in rent during the past year, what were the total gross sales for the year?

A. $750,

B. $760,

C. $760,

D. $975,

3. Ellen has an annual salary of $49,800 and wants to purchase a home with a total housing expense of no more than $1,000 per month. What is the maximum recurring debt that Ellen will be allowed to qualify under the 28/36% qualifying ratios?

A. $ B. $ C. $ D. $

8. A Couple purchased a home for $140,000 by obtaining a mortgage loan of $120,000. Five years later the home has increased in value by 15% and their mortgage debt has been reduced to $110,000. What is the % of increase in their equity?

A. 115% B. 126% C. 136% D. 155%

9. Teresa paid $1,477 to her mortgage company for this month’s PITI of which $501.25 was allocated for interest and $190. was allocated for taxes and insurance. Her annual interest rate is 7%. What is Teresa’s current outstanding loan balance after this payment? (rounded)

A. $44, B. $85, C. $87, D. $167,

10. April Agent has a listing presentation scheduled for a prospective seller. She is busy preparing a Comparative Market Analysis. What is the range of value rounded to the nearest $100 that April will report to the prospective seller from the following data? The subject property has 2,725 sq. ft., 2 1/2 baths, and a 2-car garage. Comparable #1 has 2,815 sq. ft., 3 baths, a 1-car garage, and sold 4 months ago for $282,450. Comparable #2 has 2,605 sq. ft., 2 baths, no garage, and sold 2 months ago for $260,250. Comparable #3 has 2,790 sq. ft., 1 1/2 baths, no garage, and sold 5 months ago for $276,990. For her CMA, April used the following adjustment values. The construction cost is $95 per square foot, a 1/2 bath is $1,800, a full bath is $3,000, a 1-car garage is $7,500, a 2-car garage is $13,000, and the appreciation rate is 3.4% per year.

A. $281,400 - $290, B. $281,500 - $290, C. $280,800 - $290, D. $280,900 - $290,

11. Alan and Sarah are closing on the sale their current residence on the 18th of July. After their July 1st mortgage payment the outstanding loan balance is $192,718. With an interest rate of 7 1/8%, what would be the amount of accrued interest due to their lender at closing?

A. $

B. $

C. $

D. $

12. Five years ago Walter bought his 1st home for $172,500. A local lending institution financed the purchase with a 90% LTV, 30 year note at 6 1/2%. At the time of closing Walter paid $1,029 in closing costs and $3,105 in discount points. Since purchasing the home, Walter has paid $2,745 in assessments for a sidewalk, $19,700 for a sunroom addition, $278 for a water heater repair, $3,750 for a new heat pump, and $325 for a roof repair. Before placing the house on the market, Walter painted the exterior and interior of the home for $12,475. Walter recently placed his house on the market for $259,990. He sold the property for $251,500. At closing he paid $15,090 in commission, $1,175 in seller closing costs, and $151,625 for the 1st mortgage loan payoff. What are the capital gains for this sale?

A. $31,

B. $32,

C. $35,

D. $35,

13. Elliot purchased a home for $235,000 by paying 5% down. A lender wrote a fixed 20 year note at 6.25%. The PITI is $1,990.17, of which $358.37 is for taxes and insurance. How much interest will Elliot pay over the life of the loan?

A. $156,

B. $168,

C. $254,

D. $364,

14. Polly Property Manager entered into a management agreement with Irvin the Investor for his 96 unit apartment complex. The agreement set the commission rate at 8% on gross rents collected. The complex has 64, 2 bedroom units, and 32, 3 bedroom units. The 2 bedroom units lease for $625 per month and the 3 bedroom units lease for $720 per month. The property manager collected rents for the current month based on the following occupancy of the units. There were 7, 2 bedroom units vacant, 2 units uncollected, 1 unit newly leased for 12 days, with the balance of the units paying full rent. There were 5, 3 bedroom units vacant, 4 units newly leased, 1 unit with 5 days, 2 units with 15 days, and 1 with 20 days, with the balance of the units paying full rent. What was the management fee for the current month based on the gross rents received?

A. $4,

B. $4,

C. $4,

D. $4,

Use the following information to complete the Closing Worksheet, and then answer questions 17 – 20 based on your completed Closing Worksheet. When performing prorating calculations, you should use the 360-day year and treat each month as if it has 30 days. For items prorated between buyer and seller, you should consider the SELLER responsible for the day of closing. When performing interim calculations you should NOT round off your figures. However, entries on any line of the Closing Worksheet should be rounded to the nearest cent. NO INCORRECT ANSWER CAN BE OBTAINED SOLELY AS A RESULT OF AN ERROR IN ROUNDING OFF.

Closing Date: November 9

  • Sales Price: $320,
  • Earnest Money Deposit: $5,
  • Financing - $288,000 new conventional loan for 30 years at 6 1/2% interest and one discount point and one point for loan origination fee
  • Bank to collect interim interest for November
  • Second Mortgage – Buyer to obtain a purchase money second mortgage for $10,000. Terms of the loan will not require any pre-paid interim interest
  • Seller’s loan payoff as of November 1 payment - $161,425 at 6% interest. Loan payoff to be calculated with all accrued interest and paid off at closing
  • Appraisal fee (paid at loan application ) - $
  • Credit report (paid at loan application) - $
  • Real property taxes – Annual property taxes are $2,160. Taxes for the year have not yet been paid and will be paid to the tax office at year-end
  • Homeowners insurance advance premium - $
  • Private Mortgage insurance – $1,
  • Loan escrow deposits required by lender – five (5) months of real property taxes, two (2) months of homeowner’s insurance premium, and two (2) months of private mortgage insurance premiums based on an annual renewal premium of $1,008.00.
  • Attorney fees - $
  • Survey - $
  • Flood plain certification fee - $
  • Pest inspection report - $
  • Deed preparation - $
  • Title insurance premium - $
  • Recording fees–Mortgage Cancellation $15, Deed $20, Deed of Trust $25, Purchase Money Mortgage $
  • Revenue Stamps – use state rate
  • Commission 6%

17. The bottom line of Part A of the Closing Worksheet should indicate that the total settlement charges to be paid from the BORROWER’S funds at closing, rounded to the nearest whole dollar, are

A. $10,

B. $11,

C. $11,

D. $12,

18. The bottom line of Part A of the Closing Worksheet should indicate that the total settlement charges to be paid from the SELLER’S funds at closing, rounded to the nearest whole dollar, are

A. $19,

B. $19,

C. $19,

D. $22,

19. On the “cash at settlement” in Part B of the Closing Worksheet should indicate that the CASH DUE FROM BORROWER at settlement, rounded to the nearest whole dollar is

A. $25,

B. $26,

C. $26,

D. $27,

20. The “cash at settlement” in Part B of the Closing Worksheet should indicate that the CASH TO SELLER at settlement, rounded to the nearest whole dollar is

A. $127,

B. $126,

C. $126,

D. $124,

6. $237,900 x .90 = $214,110 = Loan Amount $214,110 ÷ $1,000 = 214.11 # of units of $1, $6.32 x 214.11 = $1,353.18 = P& I per month Loan Amount after the 1st Payment: $214,110 x .065 = $13,917.15 = Interest per year $13,917.15 ÷ 12 = $1,159.76 = Interest/ 1st month $1,353.18 - $1,159.76 = $193.42 = Principal included in 1st payment $214,110 - $193.42 = $213,916.58 = Outstanding Loan Balance after the 1st payment Loan Amount after the 2nd Payment: $213,916.58 x .065 = $13,904.58 = Interest/yr $13,904.58 ÷ 12 = $1,158.71 = Interest/2nd mo. $1,353.18 – $1,158.71 = $194.47 = Principal included in 2nd payment $213,916.58 – $194.47 = $213,722.11 Outstanding Loan Balance after the 2nd payment 7. $42,500 – $6,250 = $36,250 = Net Income/mo. $36,250 x 12 = $435,000 = Net Income/year $435,000 ÷ 12 = $3,625,000 = Value of building 8. $140,000 – $120,000 = $20,000 = Original Equity $140,000 x 115% (1.15) = $161,000 = Current Value $161,000 – $110,000 = $51,000 = Current Equity $51,000 – $20,000 = $31,000 = Increase in Equity $31,000 ÷ $20,000 = (1.55)% 155% = % Increase in Equity 9. $501.25 x 12 = $6,015 = Interest/year $6,015 ÷ .07 = $85,929 = Loan Balance 10. Subject Comp #1 $282,450 Comp #2 $260,250 Comp #3 $276, 2,725 sq ft 2,815 (-8,550) 2,605 (+11,400) 2,790 (-6,175) 2 1/2 bath 3 ba (-1,200) 2 ba (+1,800) 1 1/2 ba (+3,000) 2 car garage 1 car (+5,500) no garage (+13,000) no garage (+13,000) Appreciation 4 mos. (+3,201) 2 mos. (+1,475) 5 mos. (+3,924) Net Adjustment -1,049 +27,675 +13, indicated value $281,401 $287,925 $290,

Range of Value, (Rounded to nearest $100): $281,400 - $290,

11. $192,718 x .07125 = $13,731.16 = Interest/year $13,731.16 ÷ 12 = $38.14 = Interest/day $38.14 Int./Day x 18 Days = $686.52 = Total Accrued Interest 12. $172,500 + $1,029 + $2,745 + $19,700 + $3,750 = $199,724 = Adjusted Basis $251,500 – $15,090 – $1,175 = $235,235 = Amount Realized $235,235 – $199,724 = $35,511 = Capital Gains

*Note: Discount points are deducted in the year paid ** Repairs and painting are not capital improvements

13. PITI – TI = PI

$1,990.17 - $358.37 = $1,631.80 = PI

20 Year note = 240 payments $1,631.80 PI/Month x 240 payments = $391,632 = Total PI over the life of the loan. Loan Amount = $235,000 x .95 = $223, Total PI – Total P = Total I over the life of the loan. $391,632 - $223,250 = $168,382 = Total Interest over the life of the loan.

14. 64 units - 10 units = 54, 2 Br units fully rented $625/month x 54 units = $33,750 rent for 54, 2 Br units 625 ÷ 30 = $20.83 rent/day – 2 Br $20.83/day x 12 days = $249.96 = 12 days rent – 2Br $33,750 + $249.96 = $33,999.96 = Total Rent – 2 Br

32 units – 9 units = 23, 3 Br units fully rented $720/month x 23 units = $16,560 rent for 23, 3 Br units $720 ÷ 30 = $24 rent/day – 3 Br $24/day x 5 days = $120 = 5 days rent for 1, 3 Br $24/day x 15 days x 2 units = $720 = 15 days rent for 2, 3 Br units $24/day x 20 days = $480 = 20 days rent for 1, 3 Br $16,560 + $120 + $720 + $480 = $17,880 total rent 3 Br $33,999.96 + $17,880= $51,879.96 = Total Rent $51,879.96 x .08 = $4,150.40 = Total Management Fee

15. 43,560 sq. ft./acre x 46.25 acres = 2,014,650 total square footage 2,014,650 sq. ft. ÷ 1,400’ = 1,439’ = depth of lot $1,712,450 ÷ 2,014,650 sq. ft. = .85 = price per square foot 925’ x 1,439’ = 1,331,075 sq. ft./adjoining tract 1,331,075 sq. ft. x .85/sq. ft. = $1,131,414 = purchase price/adjoining tract

$19,200.

$2,880. $2,880.

POC POC $20.

$1,188. $1,152. $648.

$108. $168. $900.

$550. $640. $80.

$70. $640. $15.

$250. $75.

$11,529.00 (^) $19,935.

Flood plain certification

22 Days (^54) 12

2 2 2

54 84 180

20 25/

Recording Fees: Release $

Purchase money second mortgage

 - $320,000. - $11,529. - $331,528. - $5,000. 
  • $288,000.
  • Purchase money second mortgage $10,000. - $1,854.
    • $304,854.
    • $304,854.
    • $331,528. - $26,675. - $320,000. - $320,000. - $19,935. - $161,667. - $10,000. - $193,456. - $1,854. - $320,000. - $193,456. - $126,543.

Flood plain certification

Recording Fees: Release $

Purchase money second mortgage Purchase money second mortgage