Real Estate Math
A Rhode Island homeowner sells their home for $410,000. After paying a 5.5% commission and $4,200 in other closing costs, what are the seller's net proceeds?
A$383,250✓ Correct
B$363,250
C$365,000
D$367,250
Explanation
Commission: $410,000 x 0.055 = $22,550.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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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