PSI Exam: Real Estate Calculations (2022/2023)

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PSI Exam: Real Estate Calculations (2022/2023) Loan to Value Ratio ✔✔its the ratio of the loan amount to the property value, where value is the lesser of either appraised value or sales price ... LTVR= ✔✔(loan amount/value) x 100 each discount point costs ✔✔1% of the loan amount, and means a discount of 0.25% off the mortgage rate amount paid for points= ✔✔loan amount x number of points % equity ✔✔is the amount of value or interest a homeowner has in a property less debts against the property equity= ✔✔value - amount owed appreciation in value ✔✔increase equity depreciation in value ✔✔reduces equity assessed value= ✔✔value x assessment ratio annual property taxes = ✔✔assessed value x tax rate proration ✔✔is calculation what "pro-rata" amount is owed by (or to) each party at closing for expenses or income generated by the real estate sale accrued prorated items ✔✔amounts allocated to both buyer & seller that havent yet been paid but will be paid by the buyers after closing (items are credited to the buyer & debited to the seller) prepaid prorated items ✔✔amounts allocated to both buyer & seller that were paid by the seller before closing (items are credited to the seller and debited to the buyer) calculate prorations with the seller ✔✔responsible for expenses & income on closing day net to seller = ✔✔sales price x percent to seller percent to seller = ✔✔100% of sale price -commission % at closing buyers owe ✔✔closing costs, lender fees, a portion of the upcoming years property taxes & insurance, recording fees, etc. amount of annual interest = ✔✔loan balance x interest rate total amount paid on a loan= ✔✔monthly payment x total number of payments transfer tax ✔✔is applied when real property is sold mortgage/deed of trust recording tax ✔✔is a tax on the recordation of the mortgage/deed of trust & is based on the loan amount amortized loan ✔✔are those that are paid off over time mortgage payments include ✔✔PITI (principal, interest, taxes, insurance) interest rate= ✔✔annual interest / loan balance loan balance ✔✔annual interest / interest rate total loan interest amount= ✔✔monthly payment x total number payments- original loan value square feet per acre ✔✔43,560 feet in a mile ✔✔5,280 [Show More]

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