An Arizona seller who pays 3% of the buyer's closing costs is said to be offering:
Why A seller concession or seller contribution Is Correct
Answer B: A seller concession or seller contribution
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Arizona Questions
- In Arizona, seller-paid closing costs (concessions) on a conventional loan are limited to a percentage of the purchase price based on the buyer's LTV. For LTVs greater than 90%, the maximum seller contribution is:Finance
- In Arizona, the seller typically pays which of the following closing costs?Escrow & Title
- A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?Finance
- A seller pays a 6% commission and $8,000 in other closing costs and nets $250,000. What was the approximate sale price?Real Estate Math
- In an Arizona transaction, 'seller concessions' on the Closing Disclosure appear as a credit to the buyer. What effect do they have on the seller's net proceeds?Contracts
- Discount points paid by a buyer at closing on an Arizona home loan have the effect of:Finance
- A homebuyer in Arizona pays 2 discount points on a $240,000 loan. How much do the points cost?Finance
Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →