Finance
A Florida property is purchased for $450,000. The buyer makes a 5% down payment and finances the balance with a conventional loan. What is the loan amount?
A$22,500
B$382,500
C$427,500✓ Correct
D$450,000
Explanation
Down payment = $450,000 × 5% = $22,500. Loan amount = $450,000 − $22,500 = $427,500.
People Also Study
Related Florida Questions
- A Florida buyer is purchasing a $320,000 home with an FHA loan requiring 3.5% down. What is the down payment amount?Real Estate Math
- A Florida investor purchases a commercial property for $1,200,000 using a 70% LTV loan. What is the loan amount and the required equity (down payment)?Real Estate Math
- A Florida buyer obtains an FHA-insured mortgage with a 3.5% down payment on a $200,000 home. The Upfront Mortgage Insurance Premium (UFMIP) currently is 1.75% of the base loan amount. What is the UFMIP?Finance
- A Florida buyer is financing with a conventional loan and the purchase price is $300,000 with a 10% down payment. If the lender requires PMI at a rate of 0.8% annually, what is the monthly PMI payment?Finance
- A Florida buyer pays $350,000 for a property. The buyer pays $70,000 down and finances the remainder. The monthly principal and interest payment is $1,495. After 5 years of payments (60 payments), the loan balance is $260,000. What is the total amount of interest paid in the first 5 years?Real Estate Math
- A Florida buyer obtains an FHA loan with 3.5% down. On a $250,000 purchase price, what is the required down payment?Finance
- A Florida borrower's monthly gross income is $6,000. The lender's conventional loan guideline allows a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?Finance
- A buyer in Florida obtains a 30-year fixed mortgage at 7% interest. The loan amount is $300,000. Using a factor of $6.65 per $1,000, what is the monthly principal and interest payment?Real Estate Math
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 PointsPrepaid 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-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →