A buyer purchases a home for $200,000 and makes a 15% down payment. What is the loan amount?
Correct Answer
B) $170,000
First, calculate the down payment: $200,000 × 0.15 = $30,000. Then subtract the down payment from the purchase price to find the loan amount: $200,000 − $30,000 = $170,000.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
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