Real Estate MathIntermediateDelaware Exam

A Delaware home's appraised value is $385,000. The buyer puts 20% down and finances the rest at 30 years, 5.5%. What is the loan amount?

Q: A Delaware home's appraised value is $385,000. The buyer puts 20% down and finances the rest at 30 years, 5.5%. What is the loan amount?

Down payment = $385,000 × 0.20 = $77,000. Loan = $385,000 − $77,000 = $308,000. To solve this, multiply the relevant values: $385,000 at 20%.. The correct answer is $308,000.. This is a common calculation on the Delaware real estate exam.

A$290,000

B$308,000Correct

C$280,000

D$295,000

Why $308,000 Is Correct

Answer B: $308,000

Down payment = $385,000 × 0.20 = $77,000.

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.

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Key Terms to Know

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.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

Pre-Approval

A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.

Math Concepts

Down Payment

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