Real Estate Math Practice Problems
Peggy 
How to Determine the Monthly Payment on a 30-Year Fixed Mortgage Understanding Monthly Payments on a 30-Year Fixed Mortgage Why Real Estate Agents Need to Know Mortgage Math As a real estate agent, one of the most valuable services you provide for clients is helping them understand the financial side of buying a home. One … Read more
Why You Need to Understand Debt-to-Income Ratio as a Real Estate Agent If you’re a real estate agent, knowing how to calculate a Debt-to-Income (DTI) ratio is one of the most important tools in your math toolbox. Why? Because this one number can make or break your buyer’s chance of getting approved for a mortgage. … Read more
How to Calculate Real Estate Commission for a 5% Listing Fee Understanding Real Estate Commission Calculations If you’re a real estate agent, one of the most important math skills you need to master is how to calculate your commission. After all, this is how you get paid! Understanding real estate commission math allows you to … Read more
As a new real estate agent, you may find yourself struggling with math, especially when it comes to calculating commissions, fees, and other financial aspects of real estate transactions. However, there is a simple method called the T-method for real estate that can make real estate math much easier for you. In this blog post, … Read more
The math portion of your real estate licensing exam may ask you to calculate commission for a sale. Typically, an agent’s commission is calculated as a portion of the sales price of the property. There is no standard percentage and it can be negotiated. In many parts of the US, both the seller and buyer … Read more
A home equity line of credit (HELOC) is a loan against the equity (value minus debt) of your home, it is essentially a second mortgage. Through calculating the equity of your property you can borrow from a lender, up to a certain amount, using your property’s value as collateral. A HELOC can be used for … Read more
If you watch too many episodes of Millionaire Dollar Listing, you may be thinking real estate agents make a lot of money. Is this true? In this post, we break down how real estate agents make money and how much money real estate agents make. How Do Real Estate Agents Get Paid? In most cases, … Read more
The math portion of your real estate licensing exam may ask you to calculate the transfer taxes for a sale. In almost all real estate transactions, buyers and sellers must pay taxes to their local counties for every property sale. For buyers, this is often called the recordation tax. For sellers, this is often called … Read more
One of the main topics on the real estate math licensing exam is understanding amortization factors. Because the actual monthly mortgage payment calculation is very complicated, amortization factors are a quick and easy way to estimate the monthly mortgage payment a buyer will need to make. In many states, the testing center will have an … Read more
Out of all of the real estate math formulas you need to know, the most basic one is the T-Method. Once you understand the T-method real estate math formula, you’ll find that many real estate math problems are just another version of the T-Method. In this post, I’ll first explain the T method and then … Read more