Real Estate Math
A Pennsylvania buyer pays 1.5 points to buy down their 7% rate. On a $240,000 loan, what is the cost of the points?
A$2,400
B$3,600✓ Correct
C$1,800
D$4,800
Explanation
Points cost = Loan Amount × Point Percentage = $240,000 × 1.5% = $3,600. Each point costs 1% of the loan amount. 1.5 points = 1.5% × $240,000 = $3,600 paid at closing to reduce the interest rate.
Related Pennsylvania Real Estate Math Questions
- A Pennsylvania buyer finances $270,000 at 7% for 30 years. Using the mortgage factor of $6.65 per $1,000, what is the approximate monthly payment?
- A square lot in Pennsylvania is 1 acre. If the lot is perfectly square, approximately how many linear feet is each side?
- A Pennsylvania investor purchases a commercial property at a 6.5% cap rate for $1.2 million. What is the annual NOI?
- A commercial property generates gross rental income of $120,000 annually. Operating expenses total $48,000. What is the net operating income?
- A Pennsylvania home is assessed at $180,000 with a total mill rate of 25 mills. What is the annual property tax?
- An investor buys a rental property for $180,000 and rents it for $1,600/month. What is the annual gross rent multiplier?
- A Pennsylvania listing expires after 90 days and the property did not sell. The agent had invested $500 in marketing costs. The agent's compensation is:
- A property has a net operating income of $45,000 per year. Using a capitalization rate of 7.5%, what is the estimated value?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →