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REE NM EXAM Questions and Solutions | Grade A+ $14.19   Add to cart

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REE NM EXAM Questions and Solutions | Grade A+

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If one discount point costs the borrower 1% of the loan amount, and increases the lender's yield by 1/8th of one percent, how many discount points must be purchased to lower the interest rate by 1%? 1 4 8 16 ️: 8 1/8th = 0.125; 1.0 ÷ 0.125 = 8 A five-sided lot has the following dimens...

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  • June 11, 2024
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  • 2023/2024
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REE NM EXAM Questions and
Solutions | Grade A+


If one discount point costs the borrower 1% of the loan amount, and increases the lender's

yield by 1/8th of one percent, how many discount points must be purchased to lower the

interest rate by 1%?




1

4

8

16


✔️: 8




1/8th = 0.125; 1.0 ÷ 0.125 = 8




A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D

= 18', and side E = 55'. What is the perimeter of the lot?




257 feet

,220 feet

320 feet

275 feet


✔️: 275 feet




44' + 67' + 91' + 18' + 55' = 275'




A home seller wants to net $15,000. If he has agreed to pay a 5% commission, the loan

payoff is $94,000 and closing costs are $16,000, what must the minimum listing price be?

Round to the nearest $100.




$125,000

$130,700

$136,300

$131,600


✔️: $131,600




Sales Price = 100%, Commission = 5%. All deductions from the sales price other than the

commission = 95% of the sales price. $94,000 loan payoff + $16,000 closing costs + $15,000

net proceeds = $125,000 deductions other than commission. $125,000 / .95 = $131,578.94

,(($131,600). $131,578.94 x .05 = $6,578.94 sales commission. $125,000 + $6,578.94 =

$131,578.94 ($131,600)




If a house sold for $40,000 and the buyer obtained an FHA-insured mortgage loan for

$38,600, how much money would be paid in discount points if the lender charged four

points?




$1,600

$1,544

$1,500

$385


✔️: $1,544




One discount point cost the buyer 1% of the loan. $38,600 loan x 0.01 = $386; $386 x 4 =

$1,544.




An apartment building that sold for $780,000 had a monthly gross income of $8,000. What is

its monthly gross rent multiplier?




97.5

62.4

, 103

158


✔️: 97.5




$780,000 ÷ $8,000 = 97.5 GRM




What is 25% converted to a decimal?




25.0

2.50

0.25

0.025


✔️: 0.25




A seller of a property, listed at $200,000, accepted a 90% offer. The home appraised at

$185,000 and the buyers obtained a loan for 85% for 30 years at 5% interest. What is the first

month's interest?




$637.50

$7,650

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