David Saks: Real Estate Practice : Lesson 3836

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 3836

math

There was an FHA commitment on a duplex that was conditional because the duplex is not going to be occupied by the owners. The cost of the property is $247,500. At closing the loan the mortgage broker is going to receive a 4% discount of the total loan, (if still allowed under currect law).

The breakdown of the FHA rates are as follows:

97% of the first $150,000

90% of the next $50,000

75% of the balance, not to exceed $275,000

Since the owner's not going to live on the property, he can borrow 85%, which he could borrow if he did occupy the property.

What is the discount amount that the broker will receive, in dollars and cents ?

The answers, along with the corresponding solution, will be posted below the photographs at the bottom of the page, so spend a little time on it before you make your way to the bottom. Good luck, and I hope you can improve your math skills with these little quizzes.

math

 

A. $7688.25

First, let's multiply $150,000 BY 97% OR .97 to get the first amount of $145,500 which is the insured value for the first $150,000.

Now, let's multiply $50,000 times 90% or .90 to get the second amount of  $45,000, which is the insured value for the next $50,000.

Now, we subtract 200 thousand dollars (150k plus 50k) from $247,500 which leaves us with a balance total of $47,500.

Since the BALANCE is $47,500 and 75% or .75 of this amount is $35,625 we proceed with:

If occupied, the insurable amount is $145,500 plus $45,000 plus $35,625 which equals $226,125.

If unoccupied, the insurable amount is $226,125 times .85 or 85% which equals $192,206.25 which is all the borrower can borrow because he's not going to live in the home.

$192,206.25 time .04 or 4% equals $7688.25, which is the discount for closing the loan, since the borrower is borrowing at the level he would receive since he's not going to occupy the home.

Wasn't that easy ?




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • December 01 2014 03:31AM

Comments

This blog does not allow anonymous comments