Real Estate Math
A Des Moines commercial property with $500,000 value has a 65% LTV first mortgage. What is the equity?
A$175,000✓ Correct
B$325,000
C$500,000
D$276,250
Explanation
Loan amount = $500,000 x 0.65 = $325,000. Equity = $500,000 - $325,000 = $175,000. To solve this, multiply the relevant values: $500,000 at 65%.. The correct answer is $175,000.. This is a common calculation on the Iowa real estate exam.
Related Iowa Real Estate Math Questions
- An Iowa farmland parcel is described as the SW¼ of the NW¼ of Section 12. How many acres is this parcel?
- A 40-acre Iowa farm sells for $8,500 per acre. What is the total selling price?
- A property in Iowa sells for $215,000. The seller pays a 6% commission. How much commission is paid?
- A 6-unit apartment building in Iowa has each unit renting for $750/month. What is the annual gross potential income?
- An Iowa property was listed for $289,000 and sold for $275,500. What was the percent below list price?
- A property is assessed at $150,000 and the assessment ratio is 80% of market value. What is the estimated market value?
- An Iowa home's sale price is $278,000. The buyer puts 20% down. What is the total down payment amount?
- An Iowa buyer's loan is $185,000 with a 30-year term at 6.5%. Using the payment factor of $6.32 per $1,000, what is the monthly P&I payment?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →