Texas Pre-License - Principles Of Real Estate II Exam Questions with Complete Solutions!

The borrower pays the lender interest in exchange what? - ANSWERSPrincipal With an amortizing loan, mortgage payments are paid how? - ANSWERSMortgage payments are structured to gradually pay off both the principal balance and the interest over the life of the loan. These payments are typically made in equal monthly installments. Mikayla, a licensed real estate sales agent, helped her client buy a property outside of Springfield. The listing agreement states that 3% of the sales price will go to the buyer's agent as commission. Mikayla made $7,500 in commission in the purchase of the home. For how much did the property sell? - ANSWERS$250,000 $7,500 / .03 = $250k Part / % = Total If a buyer makes a 15% down payment and obtains a $200,000 mortgage, what is the sales price of the property? - ANSWERSPart / % = Total 200k / .85 = $235,294 Sale price of the property = $235,294 Mikayla, a licensed real estate sales agent, helped her client buy a property outside of Springfield. The listing agreement states that 3% of the sales price will go to the buyer's agent as commission. The sales price is $250,000. What was Mikayla's commission? - ANSWERSTotal x % = Part $250,000 x 0.03 = $7,500 Mikayla's commission was $7,500 If a buyer's down payment is $20,000 and they put down $5,000 in earnest money, then how much money must the buyer put down for the remaining amount on closing day? - ANSWERS$15,000 ($20,000 - $5,000 = $15,000) in cash on closing day. A property is sold for $300,000. The buyer has paid $15,000 as earnest money and is obtaining an 80% loan. How much additional cash will the buyer have to bring to the closing day? - ANSWERS$45,000 1. Determine the loan amount of 80% Total x % = Part = 300k x .8 = $240k 2. Subtract earnest money and the loan amount from the purchase price = $300k - $240k - $15k = $45k Kat sold her hone for $340k. Kat's listing agent earned $10,200 in commission from the sale of the home. - What % of the sale did the listing agent earn in commission? - ANSWERS$10,200 / $350k = 3% What term is used to describe the total money gained? - ANSWERSProfit Lauren has a remaining balance of $300,000 on her house. Her interest rate is 4.15%. How much interest does Lauren owe for her next mortgage payment? - ANSWERSPart 1 - Find Annual Interest 1. $300,000 (principal) x 4.15% (interest rate) = Annual interest 2. $300,000 x 0.0415 = $12,450 3. The annual interest = $12,450 Part 2 - Find Monthly interest 1. $12,450 ÷ 12 = $1,037.50 Final Answer = Next month, Lauren's monthly interest will be $1,037.50 Lauren has a remaining balance of $300,000 on her house. Her interest rate is 4.15%. The annual interest is $12,450. What is Lauren's quarterly interest? - ANSWERS$12,450 ÷ 4 = $3,112.50 What are the 4 characteristics that make real estate valuable - ANSWERSDemand, utility, scarcity, and transferability If an underwriter is concerned about the accuracy of an appraisal, they might request what? - ANSWERSAn appraisal review. This review is conducted by another professional (either an independent or in-house specialist). The underwriter will use the appraised value found by the reviewer for their underwriting purposes. When appraising a newly constructed building, which approach to value is an appraiser like