A buyer purchases a home for $388,000 with a 20% down payment. What is the loan amount?
Correct Answer
B) $310,400
Down payment = $388,000 × 0.20 = $77,600. Loan amount = $388,000 − $77,600 = $310,400.
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Related Topics & Key Terms
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Related Concepts
Converting a percentage to a decimal involves dividing the percentage value by 100.
In real estate, property value can be estimated by dividing the Net Operating Income (NOI) by the Capitalization Rate (Cap Rate).
Proration is the process of dividing expenses or income between the buyer and seller at the closing of a real estate transaction. This ensures each party pays or receives only their fair share based on the period of ownership.
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