RE Exam Qs

A home sold for $96,700 with 30 year fixed rate financing at 7 1/2 % interest. The mortgage discount was 3 points, and the loan to value ration was 80%. The property was assessed at 95% of the sale price, and the total ad valorem tax rate was 29 mill. 1. Calculate the lender's approximate yield. A. 7 1/2 % B. 7 3/4 % C. 7 7/8 % D. 8% 2. Calculate the annual property taxes. A. $2,003.00 B. $2,113.09 C. $2,160.47 D. $2,664.09 3. Calculate the cost of point for the borrower. A. $2,320.80 B. $2,901.00 C. $3,020.80 D. $3,626.25

1. C. 7 7/8 % 2. D. $2,664.09 3. A. $2,320.80

A single family rental house in the city of Millview has a current market value of $250,000 and an assessed value of $185,500. The tax rates are: city 7.8 mills, county 8.1 mills, and school board 8.76 mills. 1. What are the ad valorem taxes for this property? A. $6,165.00 B. $5,820.24 C. $4,917.56 D. $4,574.43 2. This house was the owner's principal residence and qualified for a $25,000 homestead tax exemption. How much does the exemption save in taxes? A. $616.50 B. $582.02 C. $491.76 D. $457.44

1. D. $4,574.43 2. A. $616.50

A couple purchases a home for $116,000 and secures a new nonqualifying mortgage with a 30% cash down payment. 1. Calculate the documentary stamp tax on the deed based on a tax rate of $0.70 per $100. A. $371.20 B. $580.00 C. $696.00 D. $812.00 2. Calculate the intangible tax associated with the new mortgage based on a tax rate of 2 mills. A. $162.40 B. $232.40 C. $371.20 D. $568.40 3. Calculate the documentary stamp tax on the note based on a tax rate of $0.35 per $100. A. $284.20 B. $406.00 C. $568.40 D. $612.00

1. D. $812.00 2. A. $162.40 3. A. $284.20

A warehouse unit is 15' X 30' and rents for $720 per month. Calculate the annual rental income per square foot. A. $19.20 B. $28.50 C. $32.10 D. $37.04

A. $19.20

A buyer is approved for a 70% loan on a purchase price of $116,000. The buyer has paid a $5,000 earnest money deposit. How much additional cash must the buyer provide at closing? A. $3,867 B. $29,800 C. $34,800 D. $76,200

B. $29,800

The monthly payment for a principal and interest on a $64,5000 loan at 8 1/2 % for 30 years is $495.95. What amount of the second month's payment will be applied to the principal? A. $39.07 B. $39.35 C. $456.59 D. $456.88

B. $39.35

The street in front of your house is to be paved at a cost of $35 per foot of frontage. The city has agreed to pay 30% of the paving cost and will assess abutting properties for the remainder. If you frontage on that street is 75', what will be your portion of the special assessment? A. $787.50 B. $918.75 C. $1,837.50 D. $2,625

B. $918.75

A parcel of land measures 180' X 250'. How many acres does the parcel contain? A. 0.97 B. 1.03 C. 1.20 D. 1.23

B. 1.03

What is the monthly gross rent multiplier for a house that sold for $97,000 and rents for $890 per month? A. 90 B. 110 C. 120 D. 150

B. 110

Three lots recently sold and are comparable to the subject lot. Lot #1 measures 110' X 110' and sold for $33,275. Lot #2 measures 100' X 200' and sold for $31,800. Lot #3 measures 105' X 130' and sold for $38,220. The subject lot is 110' X 120'. Based on the information what is the market value of the subject lot? A. $34,430 B. $34,940 C. $36,036 D. $37,080

C. $36,036

Your business records reveal that it takes you an average of 10 showings to sell a house. you have analyzed your expenses to shwo houses and have found that $25 is the average cost to show a house one time. Your broker retains 40% of the 7% commission charged for selling residential properties. If you sell a house for $116,000, what is your net pretax income from the sale? A. $2,998 B. $3,248 C. $4,622 D. $4,872

C. $4,622

A contractor borrowed $38,000 at 10% simple interest on a 30 month term loan. At the end of the period, he paid back the borrowed amount plus all interest in one payment. What amount was the single payment? A. $9,500 B. $41,800 C. $47,500 D. $48,200

C. $47,500

A real estate investor has $150,000 to invest in income-producing property. She is looking for a first year return of 15% of her money. What must a property produce as first-year net income to attract thi investor? A. $10,000 B. $15,000 C. $22,500 D. $23,000

C. 22,500

Last year a homeowner paid $3,05 in property taxes on property with a total taxable value of $116,030. What was the tax rate in mills? A. 1.1 mills B. 2.6 mills C. 26.3 mills D. 33.5 mills

C. 26.3 mills

A two story home contains 850 sq ft of living area on each floor. The home also features a 20' X 24' garage. The reproduction cost new f the living area in $95 per sq ft and $52.50 per sq ft for the garage. What is the reproduction cost new of the structure? A. $80,750 B. $105,900 C. $161,500 D. $186,700

D. $186,700

A buyer has been approved for a loan at 4% interest for 15 years. The loan to value ratio of the loan is 80%. The interest portion of the first monthly payment is $700. What is the purchase price? A. $94,634 B. $124,500 C. $210,000 D. $262,500

D. $262,500

A small apartment building contains three apartments that are all leased and occupied. Apartment 1 is 32' X 35 1/2' and rents for $3,960 per year; apartment 2 is 30' X 40' and rents for $300 per month' and apartment 3 is 24' X 36' and rents for $70 per week. What is the average annual income per square foot? A. $2.25 B. $2.47 C. $2.63 D. $3.50

D. $3.50

Calculate the selling price of a home with selling expenses of 4% of the sale price, an outstanding mortgage balance of $84,780, and net proceeds to the seller of $9,970. A. $91,105.77 B. $98,141.20 C. $98,282.50 D. $98,697.92

D. $98,697.92

A developer purchased two 115-foot lots for $23,500 net each and divided them into three lots of equal front footage. The developer sold the lots for $225 per front foot. What is the developer's percentage of profit? A. 9% B. 9.18% C. 9.75% D. 10.11%

D. 10.11%

Calculate the number of acres contained in the following legal description: "The NE1/4 of the SE1/4 and the SE1/4 of the NE1/4 and the N1/2 of the NE1/4." A. 30 Acres B. 80 Acres C. 120 Acres D. 160 Acres

D. 160 Acres

At the expiration of a loan period of 18 months, a broker paid his bank a total of $20,565, which included $2,565 interest. What was the simple interest rate? A. 8.32% B. 8.50% C. 9.07% D. 9.50%

D. 9.50%