Real Estate Math
A Montana property with a purchase price of $375,000 requires a loan fee (point) equal to 1% of the loan amount. If the buyer puts 20% down, what is the dollar amount of the loan fee?
A$3,000✓ Correct
B$3,750
C$3,500
D$4,000
Explanation
Loan amount = $375,000 × 80% = $300,000. Loan fee = $300,000 × 1% = $3,000. To solve this, multiply the relevant values: $375,000 at 1%.. The correct answer is $3,000.. This is a common calculation on the Montana real estate exam.
Related Montana Real Estate Math Questions
- A buyer takes out a $250,000 mortgage at 6% interest for 30 years. The monthly payment for principal and interest is approximately $1,499. How much of the first payment goes to interest?
- A Montana property owner wants to refinance their home valued at $380,000. Their current mortgage balance is $210,000. A lender will allow up to 80% LTV cash-out refinance. How much cash can the owner receive (before closing costs)?
- A Montana buyer closes on a home on October 1. The annual property taxes are $2,400. At closing, the seller will pay the buyer a prorated tax credit for how many days (using a 365-day year)?
- A Montana property has gross rents of $48,000/year, vacancy and credit losses of $2,400, operating expenses of $18,000, and annual debt service of $16,800. What is the Net Operating Income (NOI)?
- A Montana property has a taxable value of $45,000 and the local mill levy is 200 mills. What is the annual property tax?
- A seller wants to net $200,000 after paying a 6% commission and $4,000 in other closing costs. What must the property sell for (approximately)?
- A Montana broker listed a property at $175,000 and it sold for $168,000. The commission rate is 6%. What is the total commission paid?
- A Montana property is assessed at 100% of market value. The market value is $175,000 and the mill levy is 120 mills. What is the annual property tax?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →