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Texas Principles Of Real Estate II: Q’s And A’s (100%)
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Texas Principles Of Real Estate II: Q’s And A’s (100%)
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Texas Principles Of Real Estate II: Q’s And A’s (100%)What does the denominator show? Right Ans - Tells how many total parts
there are
What should you do to convert fractions to decimals? Right Ans - Divide the
numerator by the denominator
Landlords base rents on what criteria? Right Ans - Landlords decide what
their rents will be, based on the rental market, type of property and the
geographic location.
Formula: Commission Right Ans - Sales price x Rate of commission =
Formula: Commission Rate Right Ans - Commission ÷ Price =
Formula: Property's Price Right Ans - Commission ÷ Commission rate =
Would it be a fair legal decision that the seller might be forced to pay a
commission to an agent who had a buyer that purchased one week after the
expiration of the listing agreement but was shown the property prior to the
end of the listing agreement if the listing agreement had a sixty-day protection
(safety) period? Right Ans - Yes, if the broker provided the buyers' name to
the seller when the listing ended and the seller had not listed with another
real estate broker.
Does a court of law favor an attorney at law or a licensed real estate broker?
Right Ans - Neither, the court does not favor any specific group or person.
Profit or Loss Right Ans - Selling price - Original cost =
Percentage of Profit Right Ans - Profit ÷ Original cost =
Profit Margin Right Ans - percentage of selling price that turned into profit.
Profit ÷ Selling price =
Add-on Interest Right Ans - Loan amount x Interest rate x # of payments
(LA x IR x N)
,Formula: APR (Annual Percentage Rate) Right Ans - 2 x number of
payments periods in one-year x total financing charges ÷ (principle, or
amount borrowed x (number of scheduled payments + 1)
2 x n x IR ÷ P(N+1)
Points are paid at closing and are equal to what? Right Ans - 1% of the loan
amount
Which of the following methods do lenders use to compute the interest on the
total amount of the loan for the entire loan term? Right Ans - The add-on
rate to compute the interest on the total amount of the loan for the entire loan
term
John is getting a $95,000 loan at 7.25 percent and will pay 4 discount points.
What will the effective interest rate be? Right Ans - 7.75%
4 points x 1/8 percent = 4/8 = .50 percent
7.25 + .50 = 7.75 percent
If a lender charges two (2) origination points on a $75,000 loan, how much
would that cost the buyer? Right Ans - $1,500
$75,000 x .01 x 2
What is the purpose of Discount Points? Right Ans - Designed to offset any
losses the lender might suffer when selling the loan to the secondary
mortgage market.
What is the total simple interest due on the following loan amount, $12,500 at
5.5% for one year? Right Ans - $687.50
$12,500 x .055 x 1 = 687.50
What is the ratio between borrowed funds and the market value of the
property being financed? Right Ans - Loan-to-value
How many square feet are in 1 acre? Right Ans - 43,560
What is a hectare? Right Ans - 10,000 square meters
, 2.471 acres
What ratio is calculated based on all of the monthly obligations the borrower
has outstanding? Right Ans - Debt Ratio
What are the conventional loan guidelines for income and debt ratios?
Right Ans - Conventional loans typically require income ratio to be under 28%
and debt ratio to be 36% or lower
What are the FHA guidelines for income and debt ratios? Right Ans - FHA
guidelines for income and debt ratios are 31% income/ 43 % debt
Which of the following procedures are used to compute the area of an
irregular parcel or room? Right Ans - Divide the shape into regular
rectangles, squares, or triangles; compute the area for each figure; then add
the areas together to get the total area for the parcel.
When closing on rental property, to do the monthly proration, rents are
always paid when? Right Ans - In advance
A mixed number has both a fraction and a: Right Ans - whole number
Which of the following must be prorated or divided proportionately between
the buyer and the seller? Right Ans - Taxes, Insurance, Utilities
Convert fractions to decimals when doing a real estate math problem by
Right Ans - dividing the numerator by the denominator.
Utilities are paid in arrears. Therefore the buyer will end up paying a portion
of the seller's bill since the buyer will get the entire bill at month end. On the
closing statement, this will appear as a Right Ans - A credit to the buyer & a
debit to the seller
What ratio is calculated based on all of the monthly obligations the borrower
has outstanding? Right Ans - Debt ratio
What is the first step in the appraisal process? Right Ans - Define the
problem and the scope of work
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