Maine Real Estate Exam Questions with Complete Answers

Ten acres of land sold for $100,000 and the borrower had a 5% down payment. The property appraised for $95,000 and the lender charged 9% interest on a 10-year loan. How much interest is the lender paid the first month? - Answer-$95000 x .95 = $90,250 x .09 = 8122.5 / 12 = $676.88 In the first quarter of the year, Nessie paid $1,500 in quarterly interest payments on a $75,000 loan. What is the interest rate? - Answer-$1500 x 4 = 6000 / 75000 = 8 % The buyers' offer of $173,000 was accepted but the home was appraised for $175,000. The borrowers had a 25% down payment and they negotiated a loan for 30 years with an interest rate of 4.5%. How much will the borrower pay in interest the first month of the loan? - Answer-$173000 x .75 = 129,750 x .045 = 5838.75 / 12 = 486.56 A borrower was charged $525.95 in interest the first month that he had the loan. He had a 10% down payment and the interest rate is 5.5%. What is the appraised value of the property? - Answer-525.95 * 12 = 6311.4 / .055 = 114,752.73 /.9 = 127,503 To purchase her condo, Kathy negotiated a $200,000 loan at 5% for 30 years and she paid 2 discount points. Her monthly payment, which includes principal and interest, is $1,073.64. How much does she owe after the first payment? - Answer-200000 * 100 = 200,000 * .05 = 10,000 = 833.00 . 1073.64-833.00 = 240.64 (240) 200, = 199,760 Franz negotiated a $250,000 loan at 3.5% interest for 20 years. He paid 2 discount points and a 1% loan origination fee. His monthly payment of principal and interest is $1,159.92. How much will he owe at the end of the second payment? - Answer-(250000 x 100 =) 250000 * .035 = 8750 / 12 = 729.17 1159.92 - 729.17 = 430.75 .75 = 249,569.24 ... THEN 249,569.24 * .035 = 8,734.92 / 12 = 727.91 1159.92 - 727.91 = 432.01 249,569.24 - 432.01 = 249,137.23 When the sales contract was negotiated, the seller agreed to pay 2 discount points on a $310,000 loan. How much will the seller pay in discount points? - Answer-310000 * .02 = 6,200 Harry sold his home to a buyer who secured a loan for $135,500. The borrower paid $4,065 in discount points. How many points did he pay? - Answer-4065 / 135500 = .03 or 3% The seller and buyer agreed to split the points. The seller paid $900 and the buyer paid $893.50. If the loan was $179,350, how many discount points were charged? - Answer-900 + 893.5 / 179350 = .01 or 1% A property was listed for $189,500. The buyer's offer of seven-eighths of the listed price was accepted by the sellers. The borrowers had a 10% down payment and negotiated a 30-year loan at a 4.25% interest rate. If the buyers were charged 1 point, how much will they pay? - Answer-189,500 / 8 * 7 = 165,812.5 -16,581.25 =149231.25 * .01 = 1,492.31 (plus initial down payment of 16,581.25) A property was listed for $199,999 and the buyer made an offer for 95% of the listed price. The offer was accepted and the buyer secured a 95% loan. If the lender charged an origination fee of 2%, how much did the borrower pay the lender to process the loan? - Answer-199,999 x .95 = 189,999.05 x .95 = 180,499.10 180,499.10 x .02 = 3609.98 What is the Housing Expense Ratio - Answer-28% What is included in the Housing Expense Ratio - Answer-Principal, Interest, Taxes and Insurance (an any homeowners association fees) PITI What is the Debt to Income Ratio - Answer-36 % What is included on Debt to Income Ratio - Answer-All debt, including PITI. A loan officer collected the following information from a potential borrower: Gross monthly income: $6,000; car payment: $389; credit card 1: $125; credit card 2: $75; sale price: $149,500; estimated property taxes are $125 per month; estimated homeowners' insurance is $45 per month; and PI payment is $713.74. Using all of the above debt information, what are the actual front-end and back-end ratios for this borrower? - Answer-Front End = 125 + 45 + 713.74 = 883.74 Back End = (Above) 883.74 = 389 + 125 + 75 = 1,472.74 A borrower negotiated a $250,000 fully amortized loan at 3.5% interest for 30 years. Her monthly principal and interest payments (PI) are $1,122.61. How much will she owe after her first payment? - Answer-250000 * .035 = 729.17 1122.61 - 729.17 = 393.44 .44 = 249,606.56 When the borrower negotiated a 15-year fixed rate loan, he had to pay 2 discount points and a 1 percent loan origination fee. The loan amount was $145,000 at 5% interest and the monthly payment was $1,146.65. What was the loan balance after the second payment? - Answer-145,000 * .05 = 7,250 / 12 = 604.167 1,146.65 - 604.17 = 542.48 145,.48 144,457.52 * .05 = 7,222.88/12 = 601.91 1,146.65 - 601.91 = 544.74 144,457.52 - 544.74 = 143,912.78 What is the annual property tax bill if the appraised value is $195,000, the assessment rate is 55%, and the tax rate is 35 mills? - Answer-195,000 * .55 = 107250 107250 x .0375 = 3754.75 (3754) A property appraised for $249,900 and it is assessed at 95% of the appraised value. If the tax rate is 3.75 per $100, what are the monthly property taxes? - Answer-249,900 * .95 = 237,405 / 100 * 3.75 = 8902.69 A property sold for $335,500 and it was assessed at 30% of the sales price. The semi- annual tax bill was $5,279.55. What was the tax rate per $100? - Answer-335,500 * .3 = 100,650 5279 * 2 = 10,559.10 / 100650 = 0.1049 * 100 = 10.49 Property in the Happy Dale subdivision is assessed at one-fourth of the market value. If the monthly tax bill is $949 and the tax rate is $2.99 per $100, what is the appraised value? - Answer-949 * 12 = 11,388 2.99 / 100 = .0299 11,388 / 0.0299 = 380,870 380,870 * .25 = 1,523,480 Property is assessed at 95% of the sale price. If the monthly tax bill is $339 and the tax rate is $3.39 per $100, what is the sale price value? - Answer-339* 12 = 4,068 3.39 / 100 = 0.0339