Real Estate Math
A buyer assumes a Michigan seller's existing mortgage balance of $187,500. The purchase price is $265,000. How much does the buyer need to pay out-of-pocket at closing (ignoring closing costs)?
A$77,500✓ Correct
B$187,500
C$265,000
D$87,500
Explanation
Out-of-pocket payment = Purchase price - Assumed mortgage = $265,000 - $187,500 = $77,500. Using the values given ($187,500, $265,000), apply the appropriate formula.. The correct answer is $77,500.. This is a common calculation on the Michigan real estate exam.
Related Michigan Real Estate Math Questions
- A Michigan buyer takes out a $180,000 mortgage. Points paid at closing are 2 points. How much does the buyer pay in points?
- A Michigan rental property costs $280,000. Monthly gross rent is $2,400. What is the gross rent multiplier (GRM)?
- A Michigan investor pays $500,000 for a commercial building and expects an 8% return on investment. What annual NOI is required?
- A Michigan home sold for $310,000. The seller agreed to pay a 5.5% commission. How much was the total commission?
- A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
- A Michigan property sold for $180,000. The seller paid $3.75 per $500 in state transfer tax. How much state transfer tax did the seller pay?
- A Michigan property has an asking price of $280,000 and sells at a 4% discount. A 5.5% commission is paid. What is the commission amount?
- A Michigan agent's annual commission income is $84,000. If the average commission per transaction is $7,000, how many transactions did the agent close?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →