Real Estate Math – Calculating Interest

Calculating interest is an essential real estate math question that you may encounter on your real estate licensing exam. Forbes magazine recently indicated that the interest rate is around 3.87 percent. As a real estate agent, it is important to know general trends of the rates (are they rising, falling, or staying the same?). It … Read more

Three Tips to Answering Multiple Choice Real Estate Math Questions

On the computer-based real estate licensing exam, you will be asked to answer multiple-choice real estate math questions. While practicing real estate math questions is an important part of preparing for the real estate licensing exam, you will also need to know strategies to answer multiple choice questions. This will help you answer questions faster … Read more

How to Calculate Appreciation

Recently, CNN published an article on where home prices are rising fastest.  If you are studying for the real estate licensing exam, one of the real estate math questions you may encounter is how to calculate the estimated appreciation (or depreciation) on real estate.  In your local market, it’s important to keep track of the appreciation … Read more

How to Read a Loan Amortization Factor Table

A common real estate math problem you may encounter on your real estate licensing exam will be to calculate a buyer’s monthly mortgage payment based on the amount and terms of the loan.  While calculating the exact monthly mortgage payment is a very complex math problem (i.e., leave it to your buyer’s lender to do … Read more

Calculating Proration

On the real estate licensing exam, you may encounter a proration question.  Prorations occur because not every expense or income can be distributed at closing.  For example, the seller may have already gotten a full month’s rent from a tenant before the closing.  Or the buyer might have to pay real estate taxes at the … Read more