An Alaska property sold for $525,000. The buyer paid 3 points on a $420,000 loan. How much did the buyer pay in points?
Why $12,600 Is Correct
Answer B: $12,600
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alaska Questions
- A buyer in Alaska closes on June 1. Annual property taxes are $4,380 and were paid by the seller through December 31 of the prior year. Using a 360-day year, how much does the buyer owe the seller at closing for the tax proration?Real Estate Math
- An Alaska buyer closes on March 15. Annual HOA dues of $2,400 were paid by the seller for the full year. How much does the buyer owe the seller at closing (using a 360-day year)?Real Estate Math
- An Alaska veteran purchases a home using a VA loan. Which statement about VA loans is correct?Finance
- In Alaska, a buyer using an FHA loan must pay:Finance
- An Alaska property sells for $500,000. The buyer gets a loan for $400,000. The lender requires an appraisal. The appraiser values the property at $480,000. What is the maximum loan the lender will approve at 80% LTV based on appraised value?Finance
- A buyer pays 2 discount points on a $350,000 loan. How much does the buyer pay in discount points at closing?Finance
- An appraiser in Alaska uses the sales comparison approach and finds three comparable sales. After adjustments, the adjusted values are $310,000, $315,000, and $312,000. The most likely estimate of value using reconciliation would be:Property Valuation
- A commercial property in Anchorage sold for $1,200,000. The commission rate was 5%. The listing broker retained 60% and paid the buyer's broker 40%. How much did the buyer's broker receive?Real Estate Math
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →