Real Estate Math
A buyer puts 15% down on a $480,000 property. The lender charges 1 origination point plus 0.75 discount points. What is the total points cost?
A$6,120
B$8,160
C$7,140✓ Correct
D$5,100
Explanation
Loan amount = $480,000 × 85% = $408,000. Total points = 1.
Related Massachusetts Real Estate Math Questions
- A Massachusetts apartment building has a potential gross income of $180,000, a vacancy rate of 5%, and operating expenses of $72,000. The net operating income (NOI) is:
- A Massachusetts buyer makes a 15% down payment on a $680,000 home. The lender charges PMI of 0.9% per year. What is the annual PMI cost?
- A Massachusetts investor buys a 4-unit building. Each unit rents for $1,500/month. The purchase price is $600,000. What is the annual gross rent multiplier (GRM)?
- A Massachusetts agent is paid a commission of $19,800 which represents 3% of the sale price. What was the sale price?
- A Massachusetts landlord deposits a $2,400 security deposit and $2,400 last month's rent. After one year at 5% interest, what is the total interest owed to the tenant?
- A Massachusetts property sold for $720,000 in 2020 and $828,000 in 2025. What is the annualized appreciation rate over 5 years?
- A Massachusetts broker earns a 6% commission split equally between the listing broker and selling broker. The sale price is $750,000. If the selling broker retains 50% and pays the selling agent 50%, how much does the selling agent earn?
- A Massachusetts investor buys a property for $1,200,000 with a 30% down payment. The lender requires a minimum debt service coverage ratio (DSCR) of 1.25. If annual debt service is $60,000, what minimum annual NOI is required?
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →