Illinois real estate exam math
Buyer funds at closing: calculate the additional money needed
A buyer can have a $60,000 price contribution and still need a different amount at closing. Costs can increase the amount, while an applied deposit or credit can reduce it. The hard part is often deciding which figures are already included. Use one ledger, label the amounts and count each payment or credit once.
Last reviewed:
The short answer
For a supplied purchase ledger, additional buyer funds equal purchase price plus the included buyer charges and debits, minus the included loan funding, applied deposits and credits. A compatible shortcut starts with the price contribution after financing, then adds the relevant costs and adjustments. Use either complete method consistently. Do not subtract a lender credit already included in a net cost total, add a prepaid already included in closing costs, or deduct financed costs again after counting the full financing.
Reviewed for October 2026. PSI lists buyer funds needed at closing at national XI.A.2, within Real Estate Calculations' seven of the 100 scored national broker questions. No buyer-funds-only quota is published. These original exercises state their funding and allocation assumptions. They do not quote an actual closing, approve a loan or replace the prescribed federal Closing Disclosure calculation.
Build a ledger that accounts for every dollar once
- Define the result and starting figures. Are you finding down payment, costs, additional buyer funds or a specific disclosure row? For a simple purchase with the loan allocated only to price, price minus that loan is the price contribution. Do not also add the full price and the down payment in the same method.
- Read every total's contents. Identify whether costs include points, prepaids, initial escrow deposits or amounts already paid. A figure labeled net of lender credits has already received that reduction. Use the stated definitions rather than assuming that every closing-cost total is gross and unpaid.
- Trace financing and earlier payments. Count the supplied full loan funding once. If a fee is financed within that funding, do not also claim it as an additional reduction. Separate an applied earnest-money balance from a portion already used to pay a pre-closing charge.
- Assign adjustment signs from the buyer's obligation. A buyer debit adds to what the buyer owes; a valid applied credit reduces it. For a proration, determine who paid or will pay and what period belongs to whom. Do not invent a customary allocation or day-count rule.
- Add, subtract and reconcile. Keep intermediate precision and round the final result as requested. Explain the difference from the price contribution. A negative model result means included sources exceed included uses; verify the entries and permitted disposition rather than turning the sign positive or promising a refund.
- When the question supplies a Closing Disclosure, follow its actual row labels and signs. General lender credits affect Total Closing Costs, paid-before-closing amounts have their own adjustment, and the form's Closing Costs Financed row has a prescribed calculation. A classroom label alone does not determine a federal row.
| Figure supplied | Effect on additional funds | Check before using it |
|---|---|---|
| Purchase price and complete loan funding | Add price and subtract the stated funding | Do not also add the price contribution as another use |
| A compatible price-contribution starting figure | Use instead of repeating price minus the relevant financing | Know whether financed fees are already reflected |
| Gross buyer costs including prepaids or initial escrow | Add the specified total | Do not add its components again |
| Costs already net of a lender credit | Use the stated net amount | Do not subtract that lender credit a second time |
| Applied remaining earnest money | Subtract the credited balance | Account separately for amounts already spent or returned |
| A cost paid before closing | Exclude from an unpaid-cost approach, or remove once from an included gross total | Do not both exclude it and subtract it again |
| Seller credit or specified seller-paid charge | Recognize the accepted benefit once | A charge excluded from buyer costs needs no second deduction |
| Proration adjustment | Add a buyer debit or subtract a buyer credit | Use the stated payment history and allocation |
| A negative final classroom balance | Preserve the sign and reconcile the excess | Not automatic authority for lender- or seller-funded cash back |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Price contribution and additional closing funds | For the simple stated purchase allocation, price minus purchase financing gives the price contribution. Additional funds also account for the included costs, prior payments and adjustments. | The final amount can be higher or lower. A disclosure's Down Payment/Funds from Borrower row follows its own prescribed calculation and is not a loan-program eligibility finding. |
| Closing costs and their components | In the federal form, Other Costs includes categories such as prepaids and initial escrow funding. These can already be inside a supplied closing-cost total. | Separate categories for explanation do not make them mutually exclusive totals to add again. |
| Gross and net costs | A gross total has not received the reductions identified in the question. A net total has already received its stated reductions. | Read net of lender credits literally. The same $2,000 cannot reduce a total twice. |
| General credits and payment of specific charges | A general credit offsets the ledger where applicable. A seller or another party can instead pay a specified charge that is not part of the buyer's included costs. | Trace how the benefit is recorded. The same party payment is not both an omitted buyer charge and an extra credit. |
| Prepaids and initial escrow | A prepaid directly pays a stated obligation or coverage period. Initial escrow funding establishes a reserve for later payments. | Both can affect funds at closing. Neither should be added again if already included in the supplied total. |
| Funding arithmetic and permission to use funds | A balanced model shows how the supplied uses and sources reconcile. Loan rules, verified funds, eligible concessions and disbursement requirements determine what may actually be used or paid. | A seller credit is not automatically a price reduction, a required borrower contribution or unrestricted cash back. |
Work through the facts
A complete purchase ledger and a matching shortcut
Price is $320,000. The $256,000 loan is allocated entirely to price. All buyer costs still due total $7,500, excluding the separately stated $1,200 tax-proration credit. A $4,000 applied deposit and an accepted $3,000 seller credit are available. No item is duplicated.
- Full ledger: $320,000 + $7,500 - $256,000 - $4,000 - $3,000 - $1,200 = $63,300.
- Shortcut: the price contribution is $64,000. Then $64,000 + $7,500 - $4,000 - $3,000 - $1,200 = $63,300.
- The credit offsets the stated buyer obligation; the contract price remains $320,000.
Answer: The buyer needs an additional $63,300 on these supplied facts. The two methods agree because they include the same amounts once.
A cost total already includes prepaids and escrow
The price contribution is $30,000. The $9,000 buyer-cost total includes $1,200 of prepaids and $1,800 of initial escrow. All $9,000 is due now. An applied $5,000 deposit is the only reduction.
- The relevant cost total is $9,000, not $9,000 plus its $3,000 of listed components.
- Additional funds are $30,000 + $9,000 - $5,000 = $34,000.
- Adding the prepaids and escrow again would incorrectly produce $37,000.
Answer: The buyer needs $34,000. Breaking a total into categories does not create extra charges.
A lender credit is already in the net costs
Price contribution is $60,000. Gross buyer costs are $9,000, reduced by a $2,000 general lender credit to a stated $7,000 net total. All remaining costs are unpaid. The applied deposit is $5,000.
- Gross-cost method: $60,000 + $9,000 - $2,000 - $5,000 = $62,000.
- Net-cost method: $60,000 + $7,000 - $5,000 = $62,000.
- Subtracting the $2,000 again from the net-cost method would understate new funds by $2,000.
Answer: The buyer needs $62,000. These are two representations of the same cost and credit, not two lender benefits.
A financed fee is already inside the full note funding
A simplified purchase has a $300,000 price, $8,000 of gross buyer charges, full loan funding of $243,000, an applied $5,000 deposit and an accepted $1,000 seller credit. The loan includes $3,000 allocated to those charges; the stated full funding and costs already capture it. No withheld proceeds or other uses apply.
- The full ledger is $300,000 + $8,000 - $243,000 - $5,000 - $1,000 = $59,000.
- Subtracting another $3,000 would count the same financing twice and incorrectly yield $56,000.
- For comparison, allocating $240,000 of financing to price leaves a $60,000 price contribution and $5,000 of costs not covered by that allocation: $60,000 + $5,000 - $5,000 - $1,000 = $59,000. This allocation comparison is not a minimum-down-payment rule.
Answer: The modeled additional funds are $59,000. Follow the separate federal rule if asked for the form's Closing Costs Financed row.
Part of a deposit paid an appraisal before closing
The buyer originally deposited $8,000. Of that, $1,000 has already paid a buyer appraisal charge included in the $6,000 gross cost total. The remaining applied deposit is $7,000. The price contribution is $40,000. No other costs or credits apply.
- Using gross costs: $40,000 + $6,000 - $1,000 paid before closing - $7,000 remaining deposit = $38,000.
- Using unpaid costs: $40,000 + $5,000 - $7,000 = $38,000.
- The original $8,000 has been split between the $1,000 charge and $7,000 still applied. Claiming an $8,000 remaining deposit plus another $1,000 benefit would count part of the money twice.
Answer: The buyer needs an additional $38,000. Keep the payment history and remaining deposit reconciled.
Points use the stated loan base
A buyer owes 1.5 points on a $280,000 loan, $1,400 in separate loan charges and $900 in prepaids. These amounts are buyer-paid now, are not included in another supplied cost total and have no offset or financed portion.
- One point is 1% of the relevant loan amount.
- Points are $280,000 × 0.015 = $4,200.
- The incremental charges total $4,200 + $1,400 + $900 = $6,500.
Answer: These three items add $6,500. They do not establish the buyer's entire cash to close without the remaining ledger.
A tax adjustment changes direction with payment history
The exercise supplies two separate possible $600 adjustments, with no recalculation of days. In case A, the seller prepaid an expense attributable to the buyer's ownership period and must be reimbursed. In case B, the buyer will pay an expense attributable to the seller's period and receives the stipulated credit.
- Case A is a $600 buyer debit, increasing additional funds by $600.
- Case B is a $600 buyer credit, reducing additional funds by $600.
- The label tax or the idea that the buyer benefits does not determine the sign. Use who paid or will pay and the stipulated allocation.
Answer: Apply the direction that matches the stated case. Do not assign a statewide proration percentage or closing-day convention from this example.
Solve for the missing price and check it
Additional funds are $55,500. Included buyer charges are $10,500. Loan funding is $300,000, the applied deposit is $6,000 and other accepted buyer credits total $4,000. No item is included twice.
- Start with cash = price + charges - loan - deposit - credits.
- Price = $55,500 - $10,500 + $300,000 + $6,000 + $4,000 = $355,000.
- Substitute: $355,000 + $10,500 - $300,000 - $6,000 - $4,000 = $55,500.
Answer: The supplied ledger implies a $355,000 price. The reverse calculation does not determine an actual negotiated price or underwriting approval.
A cash purchase still needs a ledger
Price is $210,000 without loan funding. Buyer costs still due are $4,800, excluding a separately applied $2,000 seller credit. The remaining applied deposit is $10,000. All stated amounts are accepted for this exercise.
- Included uses are $210,000 + $4,800 = $214,800.
- Available reductions are $10,000 + $2,000 = $12,000.
- Additional funds are $202,800. The absence of a loan does not make the deposit a second price charge.
Answer: The buyer provides $202,800 more under these facts. This is a cash-purchase calculation, not a claim that the federal mortgage disclosure is required for every cash sale.
Preserve a negative result
A simplified model has a $20,000 price contribution and $3,000 of unpaid buyer costs. An applied $25,000 deposit from the buyer's own earlier funds is the only reduction. No disposition or loan-program permission is stipulated.
- The modeled balance is $20,000 + $3,000 - $25,000 = -$2,000.
- The included earlier deposit exceeds the included remaining uses by $2,000.
- Verify completeness, the deposit allocation and permitted disposition. The sign is not authority to turn a seller concession into unrestricted cash back or make a disbursement.
Answer: Report a $2,000 modeled excess, preserving the negative sign. Do not call it a new $2,000 amount due or promise an actual refund.
Mistakes to avoid
- Price plus down payment are two separate uses. The compatible price-contribution shortcut replaces price minus the relevant financing; it is not added to the full price method.
- Every number called a credit must be subtracted again. Read what the starting total already includes. A general lender credit may already be netted from Total Closing Costs, and a specific seller-paid fee may already be excluded from buyer costs.
- Prepaids are always outside closing costs. They have their own category and can already be included in a closing-cost total. Initial escrow is also a separate category that can already be included.
- A financed cost is free money to deduct after the full loan. The funding must be counted once. Distinguish full note funding from a price-only allocation, and do not duplicate the fee financing.
- Use the original deposit without checking where it went. Trace the balance still applied, any payment made from it, and any amount returned or unavailable. An amount spent on a charge is not also an unchanged remaining deposit.
- An already-paid cost is excluded and also subtracted. Choose either a gross-cost reconciliation with the prior-payment adjustment or an unpaid-cost approach that has already excluded it.
- A negative ledger guarantees cash back. Preserve and reconcile the sign. An arithmetic excess does not establish the legality or allowed form of a payment.
- A classroom financed-fee label determines a Closing Disclosure row. The federal row uses a prescribed calculation and a cap. Read the actual form rules, not only how a classroom problem allocates the loan economically.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. Price is $300,000, full purchase loan funding is $240,000, all buyer costs still due are $6,000, the applied deposit is $5,000 and an accepted separate seller credit is $2,000. No duplication or other adjustments applies. What additional amount is needed?
- $53,000
- $59,000
- $61,000
- $69,000
Show answer and explanation
Answer: B. $59,000
$300,000 + $6,000 - $240,000 - $5,000 - $2,000 = $59,000. The compatible shortcut is $60,000 + $6,000 - $5,000 - $2,000. Do not add the price contribution again to the full ledger.
2. A simple price-only financing arrangement leaves a 20% price contribution on $425,000. Unpaid costs are $8,500, the applied deposit is $10,000 and no other credits apply. What is still needed?
- $103,500
- $83,500
- $75,000
- $93,500
Show answer and explanation
Answer: B. $83,500
The price contribution is $425,000 × 0.20 = $85,000. Add $8,500 and subtract the applied $10,000 deposit to get $83,500. The earlier deposit is part of the buyer's funding, not another price charge.
3. A $9,000 total already includes $1,200 of prepaids and $1,800 of initial escrow. All costs are unpaid. Price contribution is $30,000 and the applied deposit is $5,000. What is needed?
- $39,000
- $34,000
- $31,000
- $37,000
Show answer and explanation
Answer: B. $34,000
$30,000 + $9,000 - $5,000 = $34,000. The two listed components total $3,000 but are already inside the $9,000. Adding them again would give the incorrect $37,000.
4. Price contribution is $60,000, the stated $7,000 unpaid cost total is already net of a $2,000 lender credit, and the applied deposit is $5,000. What is needed?
- $60,000
- $64,000
- $67,000
- $62,000
Show answer and explanation
Answer: D. $62,000
$60,000 + $7,000 - $5,000 = $62,000. Subtracting the same lender credit again would incorrectly give $60,000; using a net total does not create another credit.
5. A full funding ledger includes $300,000 price, $8,000 gross charges, $243,000 full loan funding, a $5,000 applied deposit and a $1,000 accepted seller credit. The full loan already includes the stated financed $3,000 of charges. What is needed?
- $56,000
- $65,000
- $59,000
- $62,000
Show answer and explanation
Answer: C. $59,000
$300,000 + $8,000 - $243,000 - $5,000 - $1,000 = $59,000. Deducting another $3,000 after using the full funding would count that financing twice. No other funding or withheld amount is supplied.
6. An original $8,000 deposit paid a $1,000 appraisal already included in $6,000 gross buyer costs, leaving a $7,000 applied deposit. Price contribution is $40,000. What additional amount is needed?
- $46,000
- $37,000
- $38,000
- $39,000
Show answer and explanation
Answer: C. $38,000
$40,000 + $6,000 - $1,000 paid before closing - $7,000 remaining deposit = $38,000. Equivalently use $5,000 unpaid costs and subtract $7,000. The original $8,000 and the $1,000 payment cannot both be treated as separate additional reductions in that gross-cost method.
7. A buyer-paid charge of $900 was paid before closing and has already been excluded from the supplied unpaid-cost total. What additional adjustment should be made for that same $900?
- Multiply it by the loan rate
- None; it has already been removed from the unpaid amount
- Subtract it again as another credit
- Add it back as a new fee
Show answer and explanation
Answer: B. None; it has already been removed from the unpaid amount
The starting unpaid-cost total already excludes that charge. Another subtraction would recognize the prior payment twice. A gross-cost approach could include and then remove it once instead.
8. A $250,000 loan has two buyer-paid points due now, not included in any other total and not financed. How much do these points add?
- $2,500
- $5,000
- $50,000
- $500
Show answer and explanation
Answer: B. $5,000
Two points mean 2% of the stated loan base. $250,000 × 0.02 = $5,000. This is the points charge, not the entire buyer cash-to-close amount.
9. The seller prepaid a stated $600 expense for the buyer's period, and the buyer must reimburse it. The amount is not in another total. How does it affect additional buyer funds?
- No effect because the seller originally paid
- Increase them by $600
- Reduce the contract price by $600
- Reduce them by $600
Show answer and explanation
Answer: B. Increase them by $600
The buyer owes the stipulated reimbursement, so it is a buyer debit. The payment history and allocation establish the direction; the seller's earlier payment does not make this a buyer credit.
10. The buyer will pay a stated $700 expense attributable to the seller's period and receives that accepted adjustment now. It is not included elsewhere. How does it affect additional buyer funds?
- Increase the loan by $700 automatically
- Change the property price automatically
- Increase them by $700
- Reduce them by $700
Show answer and explanation
Answer: D. Reduce them by $700
The stipulated adjustment is a buyer credit: the seller reimburses the buyer for the seller's allocated expense. It reduces additional funds without automatically changing the loan or contract price.
11. A seller directly pays a $1,500 charge. The supplied buyer-cost total already excludes it. Should the same $1,500 also be subtracted as an additional buyer credit?
- Yes, always
- Yes, because every seller-paid charge produces two reductions
- Only if the question mentions a purchase price
- No; the excluded buyer charge already reflects that benefit
Show answer and explanation
Answer: D. No; the excluded buyer charge already reflects that benefit
Recognize the specified payment once. Excluding the seller-paid charge from buyer uses and then subtracting it again would duplicate the benefit. A general seller credit shown elsewhere is a different stated entry.
12. The model has a $20,000 price contribution, $3,000 unpaid costs and an applied $25,000 deposit from the buyer's earlier funds. What is the arithmetic result and its proper limit?
- -$2,000 proving all loans permit unrestricted cash back
- -$2,000, showing a modeled excess that needs reconciliation and permitted disposition
- $0 because negative results must always be discarded
- $2,000 additional funds definitely due
Show answer and explanation
Answer: B. -$2,000, showing a modeled excess that needs reconciliation and permitted disposition
$20,000 + $3,000 - $25,000 = -$2,000. Preserve the sign and investigate the ledger and allowed disposition. This arithmetic is neither a new positive charge nor an approval for an actual refund.
13. Cash needed is $55,500, included charges are $10,500, loan funding is $300,000, the applied deposit is $6,000 and accepted other credits are $4,000. What price balances this complete ledger?
- $365,500
- $355,000
- $366,000
- $344,000
Show answer and explanation
Answer: B. $355,000
Price = $55,500 - $10,500 + $300,000 + $6,000 + $4,000 = $355,000. Substitution gives $355,000 + $10,500 - $300,000 - $6,000 - $4,000 = $55,500.
14. For this ordinary covered purchase, the note amount is $243,000 and the only payment to third parties counted in the specified section 1026.38(i)(3) calculation outside loan/other costs is the $300,000 sale price. What is the Closing Costs Financed row under that stated calculation?
- -$3,000 because the classroom calls that fee financed
- $57,000 of extra buyer credit
- $0 because loan amount minus the specified payment is nonpositive
- -$57,000 because the difference is negative
Show answer and explanation
Answer: C. $0 because loan amount minus the specified payment is nonpositive
The prescribed comparison is $243,000 - $300,000 = -$57,000. Under the identified commentary, a zero or negative calculation gives $0 for this row. This does not duplicate an economically financed fee as another credit; other form rows reconcile the transaction. The question supplies the ordinary-purchase scope and complete inputs for this one calculation, not every loan or full-form result.
15. The actual supplied Final-column rows are: Total Closing Costs $8,000; paid before closing -$1,000; Closing Costs Financed $0; Down Payment/Funds from Borrower $60,000; Deposit -$7,000; Funds for Borrower $0; Seller Credits -$2,000; Adjustments and Other Credits -$500. What is their signed sum?
- $58,500
- $59,500
- $57,500
- $61,500
Show answer and explanation
Answer: C. $57,500
$8,000 - $1,000 + $0 + $60,000 - $7,000 + $0 - $2,000 - $500 = $57,500. The question supplies actual row values, so sum their displayed signs. Do not subtract an unlisted lender credit or add the loan again; Total Closing Costs and the other supplied rows already have defined roles.
Common questions
What is the formula for buyer funds needed at closing?
For a supplied full purchase ledger, add price and included buyer charges or debits, then subtract the included loan funding, applied deposits and accepted credits. A compatible shortcut begins with the price contribution after the relevant financing. Identify what each total already contains. The two methods agree only when they count the same uses and sources once.
Is cash to close the same as the down payment?
No. A simple price contribution covers the portion of price not met by its allocated financing. Additional funds also reflect included costs, prior payments, credits and adjustments. A federal form's Down Payment/Funds from Borrower row has its own specified calculation, independent of loan-program or investor requirements. Do not read a classroom subtraction as an underwriting approval.
Does earnest money reduce the amount still needed?
An applied deposit reduces additional funds because the buyer has already supplied that money. Trace the amount actually applied to this closing. If part paid a charge before closing, that portion is not also an unchanged remaining deposit. Regulation Z's deposit commentary specifically distinguishes the applied charge from the remaining disclosed deposit. Returned, unavailable or separately used money needs its actual treatment, not an assumed full credit.
Are prepaids and initial escrow outside closing costs?
They are separate categories, but the federal Closing Disclosure includes them under Other Costs, which contributes to Total Closing Costs. A classroom total can include or exclude them as expressly stated. If the supplied total already includes them, do not add the same amounts again. Prepaid insurance and a reserve for later bills also perform different jobs even when both are included in the total.
How do I use lender credits?
Determine whether the starting cost total already reflects the credit. Under section 1026.38(h), general lender credits are negative amounts affecting Total Closing Costs. A credit attributable to a specific listed charge is shown in the Paid by Others column under the identified commentary. If a problem gives costs already net of the lender credit, do not subtract it again. Loan pricing and allowed use of the credit are separate issues.
How do I use seller credits or seller-paid costs?
Apply the stated accepted benefit once and keep the contract price unchanged unless the facts actually amend it. A general seller credit is distinct from the seller paying a particular charge listed as Seller Paid. If that charge is already excluded from buyer costs, it does not create a second subtraction. Eligible-cost limits and required borrower contributions still need the applicable loan and transaction rules; the arithmetic does not waive them.
How do financed closing costs affect buyer funds?
Trace the financing already included. A full loan figure that includes a financed fee supplies that funding once, so a full ledger using it must not subtract the same financed amount again. A classroom method using only the portion allocated to price can instead separate the costs paid by that financing, with consistent definitions. Neither method alone tells you how to complete every federal disclosure row.
Why might the form's Closing Costs Financed row be zero when a classroom calls a fee financed?
Section 1026.38(i)(3) uses a prescribed calculation. Its commentary compares the loan amount with payments to third parties not otherwise disclosed as loan or other costs, including the sale price. A nonpositive result produces $0; a positive result is shown as a negative amount subject to the stated closing-cost cap. The loan amount is the note's face amount. Follow that rule when the question asks for this specific row rather than importing a casual financed-fee label. In the specific $243,000-note/$300,000-sale example with no other inputs to that comparison, the result is nonpositive and this row is $0. Other rows still reconcile the buyer's funding; the row is not a universal statement about whether loan dollars economically supported a fee.
How do prorations affect the buyer's funds?
A stipulated reimbursement owed by the buyer adds a debit. A stipulated credit reimbursing the buyer reduces additional funds. For example, the buyer can reimburse a seller's prepaid expense for the buyer's period or receive a credit for the seller's unpaid expense that the buyer will later pay. Read the payment history, allocated periods and supplied convention. No universal Illinois closing-day or tax-percentage assumption is used here.
What if the calculated buyer balance is negative?
Preserve the sign and reconcile all included payments, funding, charges and credits. A negative classroom balance shows included sources exceeding included uses. Regulation Z allows the actual final cash-to-close calculation to display a negative result under its rule, but a model does not approve any particular cash-back payment or unrestricted use of lender or seller funds. Resolve the actual documents and applicable requirements with the responsible closing professionals.
Is the Loan Estimate the final amount I must bring?
The Loan Estimate provides an estimate. On a covered mortgage transaction, use the current applicable closing documents and review changes with the lender and closing agent. The Closing Disclosure compares the estimate with the final calculation, and the final transaction figures still need to be understood. The amount to finance for federal disclosure purposes is also a different concept from cash needed or the note amount.
How should I check the answer on the exam?
Use the same supplied facts in a second compatible setup, or substitute an unknown back into the original equation. Explain every departure from the price contribution: costs and debits add, while recognized payments and credits reduce it. Carry intermediate precision and round only as the question requests. PSI lists this topic at XI.A.2 within the whole seven-question Real Estate Calculations area; these original exercises do not predict an individual result.
Keep practising
Your next practice step
Put real estate math into practice
Set up the calculation, keep the units consistent, and check the worked answer.
These web resources are free. The app has a separate free starter tier and optional paid full access.
Official sources and scope
Use the current regulation for the prescribed form rows and the CFPB explainers for plain-language context. The exercise assumptions do not establish a loan program's contribution limits, an actual closing figure or permission for a refund or payment.
- CFPB Closing Disclosure explainer: cost categories, credits and buyer adjustments
- Regulation Z 1026.38(g)-(h): cost totals and lender credits
- Regulation Z 1026.38(i): paid-before, financing, deposit and final cash calculation
- Regulation Z 1026.38(j)(2)(ii): deposit reduced by a pre-closing charge payment
- CFPB Loan Estimate explainer
- 12 CFR 1026.38: closing costs and buyer/seller ledgers
- PSI June 24, 2026: National XI.A.1 seller net and XI.A.2 buyer funds
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.