A Delaware property buyer pays $3.75 per $1,000 of borrowed amount for points. If they borrow $280,000, how much are the points?
Why $1,050 Is Correct
Answer A: $1,050
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 Delaware Questions
- Paired sales analysis is used in appraisal to:Property Valuation
- At a Delaware closing, the attorney's role includes:Escrow & Title
- In the income approach, before applying the cap rate, the appraiser must estimate:Property Valuation
- A Delaware buyer pays $3,500 in discount points on a $350,000 mortgage. How many points did the buyer pay?Real Estate Math
- A Delaware property closes on September 15. Annual property taxes are $4,320. Using a 360-day year, how much does the seller owe in prorated taxes (January 1 to September 15)?Real Estate Math
- A buyer in Delaware closes on August 15. Annual property taxes of $3,600 have been paid by the seller for the full year. How much does the buyer owe the seller in proration (using a 365-day year)?Real Estate Math
- A Delaware broker earns a 6% commission on a $290,000 sale and splits it 50/50 with the cooperating broker. Each broker then pays their agent 65% of the brokerage's share. How much does each agent earn?Real Estate Math
- Which of the following would appear on a seller's closing statement as a credit?Escrow & Title
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 Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →