Closing Costs: Calculations & Practice

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Anna's loan requires that she escrow seven months of her annual property tax bill of $2,439. How much money will be collected at the time of closing?

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1. What does proration mean in real estate ?

2. Buyer's and seller's expenses in a real estate transaction are called

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About This Quiz & Worksheet

If you're interested in assessing your understanding of closing costs and how they are calculated, you have reached the right place! This interactive quiz and accompanying printable worksheet ask you multiple-choice questions about various real estate terms related to closing costs. They also test your ability to calculate closing costs through real-world examples.

Quiz & Worksheet Goals

This quiz and worksheet gauge your ability to:

  • Calculate annual property taxes and prepaid interest collected at the time of closing
  • Define proration in real estate
  • Identify the name for buyer's and seller's expenses in a real estate transaction
  • Choose the correct name for the acronym CFPB

Skills Practiced

These assessments can help you practice the following skills:

  • Problem solving - use acquired knowledge to solve practice problems related to property taxes and prepaid interest at the time of closing
  • Defining key concepts - ensure that you can accurately define proration and choose the correct phrase for the acronym CFPB
  • Information recall - access the knowledge you've gained regarding expenses for buyers and sellers during a real estate transaction

Additional Learning

Accompanying this quiz and worksheet is a lesson called Closing Costs: Calculations & Practice. Review this lesson to better understand the following:

  • Purpose of the closing disclosure form
  • Definitions of sale price and loan term
  • Alternate words for the phrases 'origination fee' and 'transfer tax'
  • Meaning of an appraisal and importance of title insurance
  • System on which mortgage payments are based
  • Why escrow accounts are established
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