You are selling your house and you think it will sell for $275,000. You talk to a real estate agent who is willing to list your house for $279,900. Her fee is 7%. You currently owe $175,000 on your home. (LO 7-3, LO -7.4)

1. How much will her fee be if you accept an offer for $275,000?
2. After you pay off your existing mortgage, how much money will you have to pay for taxes, other fees, and a down payment on your next house?
3. If the buyer wants you to pay closing costs of $3,500, how much money would you have for a down payment on your next house?
4. You decide not to sell your house, but to remodel and put on an addition. What is the equity in your house given a $275,000 appraised value?
5. The bank will let you borrow 90% of the appraised value of your house, which appraises at $275,000. What is the maximum home equity loan you could get?