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20 Cards in this Set
- Front
- Back
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A typical __ table shows various rates of interest and length of loans (called terms).
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amortization
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Annual income on a property = __ rate x cost of the property
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capitalization
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___ splits can occur if one broker puts the property on MLS, yet another broker sells it. 50/50 is the most common split.
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commission
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When real property is transferred county recorder collects a documentary __ tax.
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transfer
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Documentary transfer tax is computed as, 1/3:
$1.10 per $__of value transferred, or $__ per $500 value transferred. |
$1,000
$0.55 |
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Documentary transfer tax is computed as, 2/3:
When the terms of the sale are all cash or a new loan, the documentary transfer tax is paid on the __ sales price. |
entire
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Documentary transfer tax is computed as, 3/3:
When the buyer assumes the seller’s existing loan, the tax is computed only on the __ amount. The transfer tax can be paid by the buyer or the seller, but custom usually has the __ pay the tax. |
equity; seller
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__ is the charge for the use of money expressed as dollars.
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Interest
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__ is the act of making an equitable distribution of expenses in escrow at the close of the sale.
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Proration
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There are four basic steps in proration:
1. Determine whether the amount should be a credit or a __ to the seller or the buyer. 2. Determine the number of days to be prorated. 3. Tabulate the cost per day. 4. __ the number of days by the cost per day. |
debit; Multiply
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For simplicity in determining prorations, assume there are __ days in a month and __ days in a year.
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30
360 ALWAYS break it down to a daily cost, then multiply by the no. of days. |
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Made = __ x__
- or - Income = Rate x __ |
Paid x Rate
Investment |
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When you are given monthly figures, convert them to __ figures.
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annual
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A $5,000 note for a loan from a private lender is to be paid off in
12 months. The borrower is to pay the $5,000 plus 8 percent interest on the due date. An investor purchases the note today at a discount rate of 10 percent. What is the investor’s rate of return on the amount invested? |
Made = 0.08x5000 + 0.10x5000 = 900
Paid = 4500 Rate = 900/4500 = 20% |
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__ is the amount of money borrowed.
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Principal
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I = P x R x T
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Interest = Principal x Rate x Time
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A fully __ loan is one in which the loan will be paid off at the end of the term if all the monthly payments are made.
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amortized
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When solving math problems, ALWAYS ALWAYS re-read the fine details!!
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Just do it
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Got it wrong: for transfer tax problems involving assumed loans, you MUST use __ (price - loan)!!
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equity!
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Interest paid on your first house payment = rate x __ amount / 12
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loan
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