Original broker exam practice
Illinois real estate exam math practice
Decide what the question wants before entering numbers. A correct calculation can still answer the wrong question if you use sale price for points, mix annual and monthly costs, or charge the wrong party for a proration.
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The calculation families to practise
Practise the calculation families named in the PSI broker outline: closing funds, prorations, transfer fees, PITI, equity, income and capitalization, LTV, discount points and origination fees. Each question gives its assumptions and an explanation so you can check the setup as well as the arithmetic.
The June 24, 2026 PSI outline assigns 7% of the 100 scored national broker questions to the whole Real Estate Calculations area. Numbers can also appear in other areas. This original teaching set is not a prediction of PSI questions, a complete simulation or a validated readiness measure.
Set up the calculation before using the calculator
- Write the requested result and unit: seller dollars, buyer dollars, a monthly payment, a percentage or a number of days.
- Identify the base and the parties. A loan amount, sale price, property value and cash investment can all appear in one question without being interchangeable.
- Put the amounts into one period and one unit. Convert annual tax to monthly tax for PITI, and percentage rates to decimals for multiplication.
- For prorations, identify payment status, the agreed day-count convention and who owns closing day. Decide who owes whom before calculating.
- Write the equation with labels. Use only the inputs needed for that equation and count each cost, deposit or credit once.
- Estimate, calculate and apply the specified rounding rule. Keep intermediate precision unless a particular rule expressly calls for rounding or truncation at that stage.
- Reverse-check the answer. Multiply an LTV back by its value base, reconcile a seller ledger, or add the prorated shares to the stated period total.
| Target | Basic relationship | Check the facts |
|---|---|---|
| Seller net | Seller credits minus seller debits | Use the supplied payoff and count each seller charge once |
| Buyer cash needed | Price minus available loan, plus charges, minus applied deposits and credits | Credits must actually be available for the stated use |
| Proration | Period amount / stated period days x responsible days | Payment status, closing day and party direction |
| Transfer tax | Taxable units x rate per unit | Ceiling rules, coverage, exemptions and separate government layers |
| Narrow PITI | Monthly P&I + monthly property tax + monthly homeowners insurance | A broader housing expense can include other items |
| Equity | Current value minus relevant property-secured debt | This is not seller net after all costs |
| Cap rate | Annual NOI / value | Use the same income definition and annual period |
| Value by direct capitalization | Annual NOI / decimal cap rate | This is the simplified capitalization model, not a complete appraisal |
| LTV | Loan / required property-value base | Program-specific bases can differ from sale price |
| Points and loan fees | Loan x stated decimal percentage, plus any separate flat fees | One point is 1% of the loan; do not assume every fee is percentage-based |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Seller net and equity | Equity compares current value with relevant secured debt. Net proceeds also reflect selling costs, payoffs and closing adjustments. | Use the figure requested, not whichever is easier to calculate. |
| Down payment and cash needed at closing | Price not financed is only the starting contribution. Charges, prepaids, applied deposits and eligible credits change the final funds needed. | An earnest-money deposit is generally already-paid money, not a second charge. |
| Buyer-seller adjustment and third-party payment | A between-party proration can create opposite buyer and seller entries. A seller's lender payoff is a payment to that lender. | Do not turn every seller debit into a buyer credit. |
| Arrears and advance payment | For an unpaid accrued item, the responsible party owes an amount. For a transferable prepaid benefit, the later user may reimburse the earlier payer under the agreement. | State who paid and who will use the benefit. |
| NOI and a cash-return measure | Cap rate uses annual property NOI and value. Other return measures may use cash after financing and cash invested. | The word return alone does not identify a universal formula. |
| Taxable value and its collection unit | First identify the supplied taxable amount. Then apply the separate per-$500-or-fraction rule or other stated unit. | Do not round away a taxable fraction. |
| Discount points and origination charges | One point is 1% of the loan amount. A separately stated origination charge may be a percentage or a flat dollar amount. | The question must tell you whether charges are separate or already included. |
Work through the setup and reverse-check
Seller proceeds after three costs
A home sells for $425,000. The seller pays a $236,000 mortgage payoff, a 4.5% commission, and $6,875 in other seller charges. Ignore every other item.
- $425,000 multiplied by 0.045 gives a $19,125 commission.
- Seller debits total $236,000 plus $19,125 plus $6,875, or $262,000.
- $425,000 minus $262,000 leaves $163,000.
Answer: Estimated seller net is $163,000 under the stated facts.
Buyer funds after credits
A buyer pays $450,000 with a $360,000 loan. Buyer costs are $8,600, earnest money is $7,500, and the seller gives a $3,000 credit. Ignore other items. The full loan is available, the deposit is applied once, and the $3,000 credit is permitted and fully applied to eligible costs.
- Down payment is $450,000 minus $360,000, or $90,000.
- Add $8,600 in buyer charges to reach $98,600.
- Subtract $7,500 earnest money and the $3,000 seller credit.
Answer: Buyer funds needed are $88,100 under the stated facts.
PITI from annual tax and insurance
Monthly principal and interest are $1,925. Annual property taxes are $6,720 and annual homeowner's insurance is $1,680. Ignore other charges.
- $6,720 divided by 12 gives $560 in monthly taxes.
- $1,680 divided by 12 gives $140 in monthly insurance.
- $1,925 plus $560 plus $140 equals $2,625.
Answer: Monthly PITI is $2,625.
Equity with two liens
A property is worth $510,000. The first mortgage balance is $278,000, and a home-equity loan secured by the property has a $32,000 balance.
- Relevant secured debt totals $310,000.
- Current value is $510,000.
- $510,000 minus $310,000 equals $200,000.
Answer: Owner equity is $200,000 before sale costs.
Value from NOI and cap rate
Use a simplified direct-capitalization model. The investment property produces $72,000 annual NOI, and a stated market-supported 8% overall cap rate uses the same income definition. Assume those inputs apply.
- Value equals annual NOI divided by the capitalization rate.
- Convert 8% to 0.08.
- $72,000 divided by 0.08 equals $900,000.
Answer: The indicated value is $900,000.
Points plus origination
A $320,000 loan has 1.5 discount points and a 0.75% origination fee. The question asks for their combined dollar amount and says to ignore every other charge.
- The combined percentage is 2.25%, or 0.0225.
- The base is the $320,000 loan amount, not the purchase price.
- $320,000 multiplied by 0.0225 equals $7,200.
Answer: The two stated charges total $7,200.
Prorate an unpaid charge in the correct direction
A problem supplies $7,300 annual tax, a 365-day convention and 73 seller-responsible days. The tax is unpaid; the buyer will pay the full bill later. The agreement requires the seller to credit the buyer for the seller's share.
- The daily amount is $7,300 / 365 = $20.
- The seller's share is $20 x 73 = $1,460.
- The seller is charged $1,460 and the buyer receives that credit under the stated agreement. This is not a universal Illinois proration percentage.
Answer: Seller debit and buyer credit: $1,460.
Count a fraction of a transfer-tax unit
A nonexempt example supplies $200,001 taxable value and asks only for Illinois state transfer tax at $0.50 per $500 or fraction. Ignore county and municipal charges.
- $200,001 / $500 = 400.002 units.
- The fraction requires the next whole unit: 401.
- 401 x $0.50 = $200.50. The unit rule is different from a form's whole-dollar field rule.
Answer: The state layer is $200.50 under these assumptions.
Count the stipulated closing day
For a hypothetical 2026 calendar-year tax period, use annual tax of $7,300, a 365-day convention and seller ownership January 1 through June 30, including closing day.
- The inclusive period contains 181 days. At $7,300 / 365, the daily amount is $20.
- The seller share is 181 x $20 = $3,620. The remaining 184 days total $3,680.
- Both shares add to $7,300. Different closing-day ownership changes the allocation; this example does not state when an actual Illinois tax bill is due.
Answer: Seller share: $3,620 under these supplied terms.
Solve a price-dependent cost without guessing
Target seller net is $100,000. Supplied payoff is $212,000, other fixed costs $24,000, and a separately negotiated commission is 4% of sale price. Ignore other items.
- Let price be S. The seller retains 0.96S before the fixed payoff and costs.
- Set 0.96S - $212,000 - $24,000 = $100,000, so 0.96S = $336,000.
- Divide by 0.96 to get $350,000. Reverse-check: $350,000 - $14,000 - $212,000 - $24,000 = $100,000.
Answer: The stated target requires a $350,000 price in this exercise.
Mistakes to avoid
- Using every number because it appears in the question. Choose the inputs that belong to the requested relationship.
- Treating a supplied commission percentage as an Illinois standard rate. It is a stated example. Compensation is negotiated; the exercise does not establish a required commission.
- Subtracting the loan or deposit twice. Trace what the starting figure already includes, then count each adjustment once.
- Making every seller payment a buyer credit. A lender payoff or other third-party cost is not automatically a credit to the buyer.
- Assuming one proration custom applies to every Illinois closing. Use the specified contract, payment status, day convention and closing-day allocation.
- Using a loan payoff as an automatic transfer-tax deduction. A property remaining subject to a stated mortgage is a different tax issue from paying off the seller's loan.
- Treating every fee as points. One point is 1% of the loan. Use the separate basis or flat amount supplied for another fee.
- Using a 90% score or 90-second pace as an official or validated target. These are not established by this teaching set. Review the rules behind misses and use appropriate broader practice for timing.
Solve these original math questions
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. The seller's only credit is a $300,000 sale price. Total seller debits are $192,000. What is net proceeds?
- $492,000
- $300,000
- $108,000
- $192,000
Show answer and explanation
Answer: C. $108,000
$300,000 - $192,000 = $108,000. The debit total is not proceeds, the price ignores the debits and adding the two reverses the required subtraction.
2. Monthly P&I is $1,500, annual property tax $4,800 and annual homeowners insurance $1,200. Ignore other charges. What is monthly PITI?
- $7,500
- $2,000
- $2,500
- $1,600
Show answer and explanation
Answer: B. $2,000
Monthly tax is $4,800 / 12 = $400, and insurance is $1,200 / 12 = $100. PITI is $1,500 + $400 + $100 = $2,000. The alternatives omit or misconvert components or mix annual and monthly periods.
3. A property is worth $400,000 and has $265,000 total relevant secured debt. What is equity before selling costs?
- $665,000
- $265,000
- $135,000
- $400,000
Show answer and explanation
Answer: C. $135,000
$400,000 - $265,000 = $135,000. The debt balance and value alone are not equity. Adding them produces a larger number with no place in this equity calculation.
4. Annual NOI is $54,000 and value is $675,000. What is the cap rate in this simplified model?
- 80%
- 4%
- 8%
- 12.5%
Show answer and explanation
Answer: C. 8%
$54,000 / $675,000 = 0.08, or 8%. The 12.5 figure comes from the inverse multiple rather than the requested rate; 4% and 80% do not match the supplied relationship.
5. A $240,000 loan carries two discount points. What do the points cost?
- $4,800
- $2,400
- $12,000
- $48,000
Show answer and explanation
Answer: A. $4,800
Two points is 2% of the loan: $240,000 x 0.02 = $4,800. One point would be $2,400; $12,000 uses 5% and $48,000 uses 20%. Points do not promise a fixed interest-rate reduction.
6. Price is $420,000, available loan proceeds $336,000 and buyer costs $7,500. Apply an $8,000 deposit and a permitted $2,500 seller credit once. Ignore other items. What additional buyer cash is needed?
- $91,500
- $84,000
- $101,000
- $81,000
Show answer and explanation
Answer: D. $81,000
Start with $420,000 - $336,000 = $84,000. Add $7,500, then subtract $8,000 and $2,500: $81,000. Down payment alone omits closing adjustments; adding already-paid funds or ignoring credits gives the wrong cash requirement.
7. A separately stated origination fee is 0.75% of a $280,000 loan. What is the fee?
- $2,800
- $21,000
- $2,100
- $750
Show answer and explanation
Answer: C. $2,100
0.75% is 0.0075. $280,000 x 0.0075 = $2,100. The $21,000 amount shifts the decimal, $750 treats the percentage as a dollar fee and $2,800 uses 1%.
8. A problem supplies a $306,000 loan and a $360,000 required value base. What is LTV?
- 85%
- 117.65%
- 70%
- 15%
Show answer and explanation
Answer: A. 85%
$306,000 / $360,000 = 0.85 = 85%. Fifteen percent is the complement on this base, 117.65% reverses the fraction and 70% does not follow the supplied figures.
9. Annual NOI is $63,000. Use a stated 7% cap rate in a simplified direct-capitalization model. What value results?
- $4,410
- $900,000
- $90,000
- $441,000
Show answer and explanation
Answer: B. $900,000
Value is $63,000 / 0.07 = $900,000. Multiplying gives $4,410 and answers neither the stated value problem nor an appraisal on other facts. The other values use incorrect scaling.
10. In the stated model, a property value of $800,000 supports a 7.5% cap rate. What annual NOI corresponds to those inputs?
- $6,000
- $106,666.67
- $60,000
- $800,000
Show answer and explanation
Answer: C. $60,000
NOI = value x decimal cap rate: $800,000 x 0.075 = $60,000. The $6,000 result misplaces a decimal; dividing and treating value itself as income do not answer this rearrangement.
11. Annual effective gross income is $120,000 and stated operating expenses are $44,000. The problem defines NOI before debt service, depreciation, income tax and replacement reserves. It also lists $18,000 debt service and $6,000 depreciation. What is NOI?
- $120,000
- $58,000
- $52,000
- $76,000
Show answer and explanation
Answer: D. $76,000
$120,000 - $44,000 = $76,000. The other listed deductions are outside this problem's NOI definition. Do not silently replace that definition with a cash-flow or after-reserve measure.
12. The problem states stable monthly NOI of $5,000 and a $750,000 value. What annual cap rate results after annualizing that NOI?
- 8%
- 0.67%
- 80%
- 15%
Show answer and explanation
Answer: A. 8%
Annual NOI is $5,000 x 12 = $60,000. Then $60,000 / $750,000 = 0.08 = 8%. Dividing monthly income directly by value mixes periods, and the other percentages use the wrong scale or relationship.
13. A nonexempt example supplies $200,001 taxable value. At $0.50 Illinois state tax per $500 or fraction, what is the state tax alone?
- $200.00
- $300.75
- $200.50
- $401.00
Show answer and explanation
Answer: C. $200.50
The taxable amount requires 401 units because the fraction of a $500 unit counts. 401 x $0.50 = $200.50. The $200 answer drops the fraction; $401 omits the half-dollar rate; $300.75 includes a separately assumed county layer that was not requested.
14. Use supplied rates of $0.50 state plus $0.25 county per $500 or fraction on $200,001 taxable value. What is their combined charge, excluding municipal tax?
- $200.50
- $401.00
- $300.00
- $300.75
Show answer and explanation
Answer: D. $300.75
There are 401 units. The supplied combined rate is $0.75, so 401 x $0.75 = $300.75. The county rate is an assumption for this exercise, not proof that every county imposes that tax; municipal charges remain separate.
15. Annual tax is $7,300. Use 365 days and 73 seller-responsible days. The bill is unpaid, the buyer will pay it later, and the agreement gives the buyer a credit for the seller's share. Which entry fits?
- No adjustment because the bill is unpaid
- Seller debit of $7,300
- Seller debit and buyer credit of $1,460
- Buyer debit and seller credit of $1,460
Show answer and explanation
Answer: C. Seller debit and buyer credit of $1,460
$7,300 / 365 x 73 = $1,460. The supplied payment and agreement facts make the seller responsible for that share and credit the later-paying buyer. Reversing the entries, charging the entire bill or omitting the adjustment ignores those facts.
16. A seller prepaid a transferable annual charge of $3,600. The agreement uses 360 days and requires the buyer to reimburse 90 days of the buyer's future benefit. Which adjustment is correct?
- No adjustment because the seller already paid
- Buyer debit and seller credit of $900
- Seller debit and buyer credit of $900
- Buyer debit and seller credit of $3,600
Show answer and explanation
Answer: B. Buyer debit and seller credit of $900
$3,600 / 360 x 90 = $900. The buyer reimburses the seller under these expressly stated transferable-benefit and agreement facts. This is not a rule that every prepaid policy or charge automatically transfers.
17. A seller pays a stated $212,000 mortgage payoff at closing. Which conclusion is correct merely from that fact?
- The buyer automatically receives a $212,000 credit
- The transfer-tax base automatically drops by $212,000
- The seller has made no payment
- It is a seller payment to the lender; it is not automatically a buyer credit or tax-base deduction
Show answer and explanation
Answer: D. It is a seller payment to the lender; it is not automatically a buyer credit or tax-base deduction
The payoff is a payment to the lender and a seller cost in this supplied ledger. A buyer credit or transfer-tax mortgage exclusion requires different facts. Do not treat every seller debit as the buyer's money or every payoff as property remaining subject to debt.
18. A property is sold at its stated $500,000 value. Relevant secured debt and supplied payoff are both $300,000. Seller costs are $40,000, with no other adjustments. What are net proceeds?
- $200,000
- $500,000
- $240,000
- $160,000
Show answer and explanation
Answer: D. $160,000
Equity before costs is $500,000 - $300,000 = $200,000. Net proceeds after the separate $40,000 costs are $160,000. Value, equity and proceeds are different results.
19. Price is $400,000, available loan $320,000 and buyer charges $9,000. Apply a $10,000 deposit once. Although a $10,000 seller credit was proposed, the problem permits only $6,000 to be applied. Ignore other items. What additional cash is needed?
- $73,000
- $89,000
- $69,000
- $79,000
Show answer and explanation
Answer: A. $73,000
$400,000 - $320,000 + $9,000 - $10,000 - $6,000 = $73,000. Use only the $6,000 actually permitted by the problem, not the larger proposed credit. This does not approve a private credit arrangement or an excess refund.
20. A $200,000 loan has two discount points plus a separate flat $1,000 origination charge. What is their combined dollar cost?
- $4,000
- $5,000
- $6,000
- $201,002
Show answer and explanation
Answer: B. $5,000
Two points cost $200,000 x 0.02 = $4,000. Add the separate flat $1,000 charge to get $5,000. Do not invent a 1% fee, omit the flat amount or add the loan principal to closing charges.
21. For this hypothetical 2026 calendar-year tax period, annual tax is $7,300 and the agreement uses 365 actual days. The seller owns January 1 through closing June 30, including closing day. What is the seller's tax share?
- $3,680
- $3,620
- $3,650
- $3,600
Show answer and explanation
Answer: B. $3,620
January 1 through June 30, 2026 inclusive is 181 days. The daily amount is $7,300 / 365 = $20, so the seller's share is $3,620. The $3,600 result excludes closing day, $3,680 is the remaining 184-day share and $3,650 assumes exactly half a year. This is the supplied hypothetical allocation, not an Illinois bill due-date rule.
22. An otherwise correctly determined PTAX-203 Line 11 amount is $200,000.01. Under the instruction to round Lines 11 through 18 up to the next highest whole dollar, what is the Line 11 entry?
- $200,000
- $200,500
- $200,001
- $200,000.01
Show answer and explanation
Answer: C. $200,001
The specified whole-dollar field rule gives $200,001. This is not nearest-dollar rounding or rounding to a $500 unit, and leaving cents does not apply the stated instruction. Taxable-value determinations and exemptions require their own facts.
23. A Fannie Mae delivery calculation has an unrounded LTV of 80.001%. Using exactly the documented method of truncating to two decimal places and then rounding up to a whole percent, what results?
- 80.01%
- 81%
- 80.001%
- 80%
Show answer and explanation
Answer: D. 80%
First truncate to 80.00%, then round up to the whole percent: 80%. Rounding the original number straight up would skip the required first step. Lenders may use methodology producing the same or a higher ratio; this question specifies the exact two-step method. The result is not a PMI-cancellation or loan-approval decision.
24. A seller wants $100,000 net. The supplied payoff is $212,000 and other fixed seller costs are $24,000. A separately negotiated commission is 4% of the unknown sale price. Ignore all other items. What price produces the target?
- $364,583.33
- $336,000
- $350,000
- $349,440
Show answer and explanation
Answer: C. $350,000
Let price be S. Then S - 0.04S - $212,000 - $24,000 = $100,000, so 0.96S = $336,000 and S = $350,000. At that price, commission is $14,000 and net is exactly $100,000. Adding costs without allowing for the price-based commission does not solve the equation.
25. A supplied monthly P&I factor for the stated loan rate and term is $6.125 per $1,000 borrowed. The loan is $360,000, annual tax $7,200 and annual homeowners insurance $2,400. HOA dues are $200 monthly. What is narrow PITI using that factor?
- $3,005
- $2,805
- $2,205
- $3,205
Show answer and explanation
Answer: A. $3,005
There are 360 units of $1,000, so monthly P&I is 360 x $6.125 = $2,205. Add $600 monthly tax and $200 insurance to get $3,005. The $2,205 choice omits both escrow components, $2,805 omits insurance and $3,205 adds HOA dues to a total that asked only for narrow PITI. The factor is supplied for this exercise, not a current loan quote.
26. In a simplified direct-capitalization model, annual NOI remains $60,000 while the cap rate rises from 6% to 8%. What is the percentage decrease in indicated value?
- 33.33%
- 25%
- 2%
- 8%
Show answer and explanation
Answer: B. 25%
Value changes from $60,000 / 0.06 = $1,000,000 to $60,000 / 0.08 = $750,000. The $250,000 decline divided by the original $1,000,000 is 25%. Two percentage points is the cap-rate change, about 33.33% is the relative cap-rate increase, and 8% is the new cap rate itself.
27. This exercise defines simple cash yield as annual cash flow divided by cash invested. Cash flow is $12,000 and cash invested $100,000. It separately gives $60,000 NOI and $750,000 property value. What is the defined cash yield?
- 8%
- 120%
- 12%
- 6%
Show answer and explanation
Answer: C. 12%
Use the definition asked for: $12,000 / $100,000 = 12%. The NOI/value calculation is a different 8% cap rate. Neither 6% nor 120% follows the stated cash-yield relationship. These simplified measures do not describe every return or replace a full investment analysis.
28. Current property value is $400,000 and relevant secured debt totals $425,000. What is equity before any transaction costs or debt changes?
- $0
- -$25,000
- $425,000
- $25,000
Show answer and explanation
Answer: B. -$25,000
$400,000 - $425,000 = -$25,000. Keep the negative sign: the debt exceeds value by $25,000. Clamping the result to zero or calling the debt balance equity changes the calculation. Negative equity alone does not forgive the debt or approve a short sale.
Common questions
How many math questions are on the Illinois broker exam?
The national broker outline allocates 7% of its 100 scored questions to the whole Real Estate Calculations area. Numerical work can also occur in other areas; this does not guarantee that only seven questions anywhere will involve numbers.
Which topics should I practise first?
Use the named calculation families: seller net, buyer funds, prorations, transfer fees, PITI, equity, rate of return and capitalization, LTV, discount points and origination fees. Supporting arithmetic also appears in other outline areas.
Is this an official PSI question set?
No. These are original teaching questions, with their assumptions stated. They are not secure, recalled or predicted PSI questions and are not calibrated to PSI difficulty.
Is 90% a required or validated practice target?
No. This page does not establish a pass-prediction threshold. Check every miss and uncertain correct answer by formula, base, period and party direction.
Should I round every intermediate answer?
Keep precision unless the problem or applicable rule calls for rounding or truncation at a particular step. Tax units, form fields and program delivery ratios can have different rules.
Does one discount point always use purchase price?
No. One point is 1% of the loan amount. Purchase price can be a separate figure in the story. Another fee can use a different expressly stated basis without changing what a discount point means.
Are all origination fees percentages?
No. A question may supply a percentage, a flat charge or separate charges. Read whether a fee already includes another amount before adding it.
Is equity the same as seller net?
No. Equity is current value less relevant secured debt. Payoff terms, selling costs and closing adjustments affect actual net proceeds.
How do I decide the proration direction?
Identify who paid, who used the benefit and what the agreement requires. A seller share of unpaid taxes credited to the later-paying buyer differs from reimbursement for a transferable prepaid benefit.
Does every Illinois closing use the same proration percentage?
No. Use the stated contract and day convention. The example's percentage or day allocation is not a universal Illinois requirement.
Is cap rate the same as every rate of return?
No. Cap rate uses annual property NOI and value. A cash-return measure can use cash flow after financing and the investor's cash contribution. Use the definition supplied instead of treating every return label as the same formula.
Does PITI include association dues?
Narrow PITI means principal, interest, property taxes and homeowners insurance. A broader housing expense can include association dues, mortgage insurance or other required components. Answer the requested total.
Can I deduct a seller mortgage payoff from transfer-tax value?
Not merely because it is a payoff. Illinois's property-remaining-subject-to-mortgage rule has its own document and outstanding-debt conditions. These exercises supply a taxable value when that legal determination is not being tested.
Can I continue in the app?
Yes, if it suits your routine. Property Ownership practice is free; full access is paid. Pass Illinois provides exam preparation and does not replace approved pre-license education.
Are state, county and municipal transfer taxes one universal rate?
No. The Illinois state rule uses $0.50 per $500 or fraction of the applicable taxable value. County adoption and municipal charges are separate matters. Use each supplied or verified layer and any applicable exemption instead of assuming one statewide combined total.
Is rounding to a whole dollar the same as counting $500 tax units?
No. PTAX-203 instructs rounding Lines 11 through 18 up to the next highest whole dollar. A per-$500-or-fraction tax calculation separately counts taxable units. Neither is ordinary nearest-value rounding.
Does Fannie Mae always round the original LTV straight up?
The documented method first truncates the percentage to two decimal places, then rounds up to a whole percent. For example, 80.001% becomes 80.00% and then 80%. Lender systems may produce the same or a higher result. This program method is distinct from other exercise or tax rounding rules.
How can I estimate P&I from a rate and term?
Use the stated payment factor, table or amortization method for that loan amount, rate and term. If a factor is per $1,000, divide the loan by $1,000 before multiplying. Loan amount times annual interest divided by 12 is not a general formula for a fully amortizing P&I payment.
Is a commission percentage in a question the Illinois standard?
No. The exercise supplies a negotiated percentage for its calculation. It does not establish a required rate or justify coordinated pricing among competing brokerages.
Must every math question be finished in 90 seconds?
No official per-question entitlement or validated pace is established here. Practise accurate setup first, then use broader timed practice and your appointment instructions to evaluate pacing. This page does not confirm which calculator or writing tools are enabled for a particular delivery method.
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Official sources and scope
Reviewed October 28, 2026. PSI establishes the exam scope; the cited primary rules and guidance support the formulas and legal distinctions. Every numerical scenario is an original exercise with stated assumptions. Tax-form instructions and lending rules have specific scopes and dates, and an educational calculation does not approve an actual closing, loan or appraisal.
- PSI Illinois Candidate Information Booklet: National XI calculations
- 12 CFR 1026.38: closing costs and buyer/seller ledgers
- CFPB: payoff amount versus current mortgage balance
- CFPB: home equity and home-equity loans
- CFPB: points and loan amount
- Fannie Mae B2-1.2-01: LTV definitions and delivery rounding
- 35 ILCS 200/31-10: Illinois state transfer-tax rate and base
- 55 ILCS 5/5-1031: county transfer-tax authority
- Illinois DOR: property-tax responsibility at closing
- Fannie Mae: Actual/360 and30/360 definitions
- California DRE chapter 15: annual NOI and direct-capitalization arithmetic
- OCC Commercial Real Estate Lending handbook: income and value analysis
- FTC: prices must be set independently
- Fannie Mae multifamily: defined NCF subtracts replacement reserve from NOI
- U.S. Naval Observatory: the Gregorian leap-year rule
- CFPB: principal, interest, taxes and insurance
- CFPB: monthly mortgage payments depend on amount, rate and term
- IDOR PTAX-203: separate whole-dollar field rule
- IDOR: current real estate transfer-tax resources
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.