Real Estate Math
A buyer puts 20% down on a $280,000 home. What is the down payment?
A$42,000
B$46,000
C$50,000
D$56,000✓ Correct
Explanation
Down payment = $280,000 x 20% = $56,000. To solve this, multiply the relevant values: $280,000 at 20%..
People Also Study
Related North Dakota Questions
- A North Dakota buyer puts 5% down on a $320,000 home and is required to pay PMI at 0.5% annually on the loan balance. What is the annual PMI cost in the first year?Real Estate Math
- A North Dakota home was purchased for $210,000 with a 10% down payment. After 5 years of paying down the mortgage, the outstanding balance is $180,000 and the home is now worth $265,000. What is the homeowner's equity?Real Estate Math
- A North Dakota property is purchased for $350,000. The buyer puts 25% down. If the property appreciates 4% in one year, what is the buyer's return on the down payment (simple ROE)?Real Estate Math
- A North Dakota property sells for $425,000. The buyer makes a 20% down payment. How much does the buyer borrow?Real Estate Math
- A North Dakota buyer is approved for a conventional loan with a 3% down payment. This is an example of what program?Finance
- How many hours of pre-license education are required to sit for the North Dakota real estate salesperson exam?North Dakota License Law
- How many questions are on the North Dakota real estate salesperson licensing exam?North Dakota License Law
- What is the minimum passing score on the North Dakota real estate salesperson licensing exam?North Dakota License Law
Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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
Study This Topic
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →