Real Estate Math
An Ohio seller needs to net $240,000 after paying a 6% commission. What must the property sell for?
A$255,319✓ Correct
B$254,000
C$253,191
D$250,000
Explanation
Sale price = Net / (1 − Commission) = $240,000 / 0.94 = $255,319 (rounded).
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Key Terms to Know
Amortization
The 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.
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.
Math Concepts
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