Real Estate Appraisal Review Questions and Answers

Amortization paying off a loan in equal installments; loan where the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan. Discount Points A fee charged by the lender at settlement that results in increasing the lender's effective yield on the money borrowed. One discount point equals one percent of the loan amount. linear measurement measurement made on a line. The linear measure of a 4-foot square is 16 feet Loan Discount Prepaid interest; increasing the lender's yield on a loan without increasing the interest rate statutory year A year composed of 12 months, each with 30 days, for a total of 360 days in a statutory year. Also known as a banker's year; contrast with a calendar year, which has 365 days, or 366 in a leap year. Volume size in cubic units (cubic inches, etc.) of a three-dimensional figure such as a cube. volume = length × width × height area of a triangle (base × height) ÷ 2 feet to square yards divide the area value by 9 cubic feet in a cubic yard divide 27 Prorated Taxes annual taxes ÷ 12 months = taxes per month monthly taxes ÷ days = taxes per day taxes per month × x months = $ taxes per day × x days = $ (taxes per month × x months) + (taxes per day × x days) = Answer