A. The term of the mortgage is irrelevant. $360,000 (Price of House) × 0.80 (LTV) = $288,000 (Mortgage Amount) $288,000 (Mortgage Amount) × 0.07 = $20,160 (First Year’s Interest) $20,160 (First Year’s Interest) ÷ 12 months = $1,680 (First Month’s Interest)
C. There is a little trick here insofar as, for state mortgage recording tax purposes, whether the property is in or out of Dade County doesn’t matter. It does matter for deed recording purposes. You need to remember the recording tax rates: $35 per $100 for the note and 2 mills ($0.002) for the mortgage itself. Remember: Mortgage loans generally include the note or promise to pay as well as the mortgage document, which creates the lien on the property. $150,000 ÷ 100 = 1,500 units $1,500 × $0.35 = $525 (Amount for the Note) $150,000 × $0.002 = $300 (Amount for the Mortgage) $525 + $300 = $825
C. First, to find out the dollar amount of the commission, you subtract the net to owner from the selling price. $161,200 – $152,737 = $8,463 commission Commission ÷ Selling Price = Commission Rate $8,463 ÷ $161,200 = 0.525 (or 5.25%)
B. The thing to remember is that interest is always paid on the unpaid balance and that, for these kinds of problems, annual interest divided by 12 months is a pretty close estimate of the first month’s interest payment. $200,000 (Mortgage Amount) × 0.06 (Annual Interest Rate) = $12,000 $12,000 (First Year’s Interest) ÷ 12 months = $1,000 (First Month’s Interest) $1,275 (Monthly Payment) – $1,000 (Interest) = $275 (Principal Payment) Remember here that each monthly payment on an amortized mortgage is made up of principal and interest. $200,000 (Amount of Mortgage) – $275 (First Month’s Principal Payment) = $199,725 (Principal Balance Remaining after the First Month’s Payment)
B. The thing to remember here is that each payment is part principal and part interest and that everything you pay back is interest except for the amount of the original principal. Also the 5% is irrelevant to calculate the answer. $1,342.50 (Monthly Payment of Principal and Interest) × 12 months × 30 years = $483,300 (Total Payments) $483,300 (Total Payments for the Life of the Loan) – $250,000 (Original Principal) = $233,300 (Interest Paid)
A. A dedication is the gift of land made by a developer to the appropriate government agency.
B. Tract home is the term used to describe this type of building.
A. This is statutory.
B. This is statutory.
D. This is statutory.
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