Real Estate Math
A Mississippi homeowner refinances a $175,000 mortgage. Closing costs total $4,200. The new rate saves $95 per month. The break-even period (months) is:
A44 months✓ Correct
B37 months
C48 months
D21 months
Explanation
Break-even period = Total Closing Costs ÷ Monthly Savings = $4,200 ÷ $95 = 44.2 months, approximately 44 months. The homeowner needs to stay in the home for at least 44 months after refinancing to recover the refinancing costs through the monthly savings.
Related Mississippi Real Estate Math Questions
- A Mississippi commercial tenant leases 4,500 square feet at $18 per square foot per year on a triple-net basis. Annual base rent is:
- A Mississippi property is listed at $225,000. After 60 days, the seller reduces the price by 4%. The new listing price is:
- A Mississippi property tax bill shows an assessed value of $85,000 at 80% of market value. The property's estimated market value is:
- A Mississippi investor has a $400,000 property with a $280,000 mortgage. The debt coverage ratio (DCR) is 1.25 and annual debt service is $24,000. The NOI is:
- A Mississippi rental property generates $2,800 per month in rent. The owner wants to sell at a price representing a gross rent multiplier (GRM) of 10. What is the listing price?
- A Mississippi buyer makes an offer of $215,000 on a property listed for $229,900. The offer represents what percentage of the list price (rounded to nearest whole percent)?
- A Mississippi property has annual operating expenses of $28,000 and a net operating income of $52,000. What is the effective gross income?
- A Mississippi listing agent earns a 3% commission on a $275,000 sale. The agent splits 50% of their commission with their broker. How much does the agent personally earn?
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →