Math

Question 1

1 Square foot to inches

Answer 1

144 square inches

Question 2

1 Square Yard

Answer 2

9 square feet

Question 3

1 square mile

Answer 3

640 acres

Question 4

1 acre on sqft

Answer 4

43560 square feet

Question 5

a mill

Answer 5

1/1000th of a doller or 0.001 or one dollar per $1000

Question 6

Conventional rates

Answer 6

28/36

Question 7

FHA insured loan

Answer 7

31/43

Question 8

VA insured Loan

Answer 8

41/41

Question 9

Non conforming

Answer 9

up to 55

Question 10

Loan rats 28/36 what does the first number represent and what does the second number represent.

Answer 10

• first number is called front end ratio

- second number is called back end ration

Question 11

Example for front end number conventional loan 28/36

Answer 11

the buyers monthly inocme is 3200 the highest he can qualify for is $896, 28% of his income.

Question 12

Example for back end ration.

Answer 12

the buyer monthly gross income is $3200 and car payment of $150 and credit card payment of $80. Calculate 36% of $3200=$1152 and deduct the expenses= $922. the buyer monthly payment plus expenses must not go above 36%

Question 13

Back end ratio

Answer 13

adds all the buyers monthly expenses such as credit card payments and auto loan payments.

Question 14

Proration calculation

Answer 14

Amount to pay=how many days x daily rate

Question 15

cap rate

Answer 15

NOI/Cost ( or value).

• Example cap rate for $1.000.000 property with $110.000 NOI is 11%. to find out how long it would take for the buyer to regain investment divide 100 by the cap rate: 110/11 =9.09 years

Question 16

Calculating value

Answer 16

NOI / Cap rate = Value

Question 17

GRM

Answer 17

Sales Price/Gross Rent

Question 18

GIM

Answer 18

Sales Price/Gross Income

Question 19

Compound interest calculates the _____ from the _____ plus _____

Answer 19

interest from the principal balance plus accrued interest

Question 20

To calculate the interest

Answer 20

prinicipal x interest per period

for example $1000 loan over one year at 10% interest compounded is:

1. Find the quarterly interest rate: 10%/4=2.5%
2. 1st quarter $1000x.025=$25 add that to prinipal
3. 2nd qurter $1025x.025=$25.63 add that to prinicpal
4. 3rd quarter $1050.63x.025=$26.27 add that to principal
5. 4th quarter $1076.90x.025=$26.92 add all together
6. total compound principle is $1103.82
7. Total interest for one year= $1103.82-1000=103.82

Question 21

Amortization schedule/ table provides the amount of payment per every $1000 of the loan.

Answer 21

Example: beth bought a home for 800.000 at 90% LVt at 7.5% for 30 years.

1. Find the loan amount 800.000 x.90=720.000
2. Find the per $1000 amount: 720.000/1000=720
3. Find the factor of 7.5% for a 30 year loan from the mortgage table -> the factor is 7.
4. 7x$720=5040