Real Estate Math
A NJ property owner bought a home for $280,000 with a 20% down payment. After 10 years, the home is worth $420,000 and the mortgage balance is $180,000. What is the owner's equity?
A$140,000
B$224,000
C$240,000✓ Correct
D$196,000
Explanation
Equity = Current Value – Mortgage Balance = $420,000 – $180,000 = $240,000. To solve this, multiply the relevant values: $280,000 and $420,000 at 20%..
Related New Jersey Real Estate Math Questions
- Using the income approach, a NJ property with a 6% cap rate and an asking price of $1,200,000 must generate what annual NOI to justify the price?
- A NJ broker earned $18,750 commission on a sale. If the commission rate was 6.25%, what was the sales price?
- A NJ property manager charges 8% of collected rents for their services. If annual gross collected rent is $144,000, what is the annual management fee?
- A NJ property manager charges 8% of monthly rent for management. The property has 4 units each renting for $1,800/month. What is the annual management fee?
- A NJ property generates $92,000 NOI annually. If an investor pays $1,150,000, what cap rate did they accept?
- A NJ apartment building has 10 units, each renting for $1,500/month. Operating expenses are 40% of gross income. What is the annual NOI (assuming 100% occupancy)?
- A NJ landlord collects $2,200/month rent from each of 6 units. Annual vacancy is 5%. What is the effective gross income?
- A NJ buyer purchases a $550,000 home with a 10% down payment financed with a 5-year interest-only mortgage at 6% annual interest. What is the monthly interest payment?
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →