Real Estate Math
A New Mexico salesperson earned $45,000 in commissions. Their qualifying broker takes a 35% desk fee. The salesperson's net income (before personal taxes) is:
A$15,750
B$29,250✓ Correct
C$30,000
D$38,250
Explanation
Desk fee (broker's portion) = $45,000 × 0.35 = $15,750.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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