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10 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Based on the problem in 140, how much of the principle balance is paid off in the first two months if the loan |
19.04 |
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The jones' buy a house for 50k. They pay 20% down and finance the balance by a mortgage. If the jones pay 3 points at closing, what is the cost of the points. |
1200 |
50k x .20 = 10k. 50k - 10k = 40k. The points are 1% of the loan amount and the number of points is 3. 3 x (40k x .01 = 400) $400 = $1200 |
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A house is sold for 80k and the buyer receives a loan of 40k. What is the loan to value ratio. |
50% |
The loan is divided by the value or purchase price. 40k divided by 80k = .5 |
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If the real estate taxes for last year were 3685, what would the prorated tax entry be for this year's taxes for a Sept 11 closing. |
2554.26 debit to the seller, 2554.26 credit to the buyer. |
The formula us total dollar divided by the totals days in the time period (one year) = a per diem. The per diem times the days uses = prorated amount. If in arrears credit the buyer and debit the seller (taxes are paid in arrears). 3685 divided by 365 = 10.0959 (taken in the 4th decimal place) per diem 10.0959 x 253 days used by the seller = 2554.2603 or 2554.26 (rounded back to the 2nd decimal place). |
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If the buyer us assuming an 8.5% loan with a balance of 127,538 at closing on July 11th, what is the interest proration. |
291.43 debit the sellers, credit the buyer. |
First find the interest for July. The the formula irv - annual interest us equal to the interest rate times the principle balance. 8.5% = .085 × 127,538 = 10,840.73 annual interest. Then divide by 12 = 903.39 montly. 903.39 ÷ 31 = 29.1416 per diem. 29.1416 × 10 days = 291.4161 or 291.42. |
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M is purchasing a property from H. The closing is in august 18th. M us assuming H homeowner's insurance policy which gas a one year premium of 780. If the annual premium was paid on Nov 1, what entries would be made on the buyers and sellers closing statement. |
160.26 credit the seller, debit the buyer. |
780 divided 365 = 2.1270 per diem. 2.1370 per diem × 75 days = 160.2740 or 160.27 debit buyer, credit seller. |
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A four Plex has 2 units renting for $550 each and 2 units renting for $650 each pwr month. Rent was paid on Oct. 1st in advance. Closing is scheduled for October 17th. Who owes whom and how much do they owe. |
1120 credit the buyer, debit the seller |
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The water and sewer bill $44 was paid by the seller. The bill covered Jan 1st through Feb 28. The closing is set for Feb 27th. Who owes whom and how much do they owe? |
1.49 debut the buyer, credit the seller. |
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The closing is April 1sr and the HOA monthly assessment if $200 has been paid by the seller. Who owes whom and how much? |
There is BBB o proration, buyer owes seller $200. |
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If yoyblike a home for $230k and the seller signs a contract for $225k. |
Your commission is based on the sales price of $225k |
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