Real Estate Math
A buyer pays 2.5 points on a $320,000 loan. How much does the buyer pay in points?
A$6,400
B$7,200
C$8,000✓ Correct
D$9,600
Explanation
Points = Loan amount × percentage = $320,000 × 0.025 = $8,000.
People Also Study
Related Arizona Questions
- A homebuyer in Arizona pays 2 discount points on a $240,000 loan. How much do the points cost?Finance
- A buyer in Arizona purchases a home for $420,000 with a 20% down payment. What is the amount of the buyer's mortgage loan?Real Estate Math
- Discount points paid by a buyer at closing on an Arizona home loan have the effect of:Finance
- A buyer purchases a home for $310,000. The lender requires a 5% down payment. The buyer also pays 1.5 discount points. What is the total amount the buyer pays in points?Real Estate Math
- An appraiser values an Arizona commercial property using a cap rate of 7% and an NOI of $63,000. What is the indicated value?Property Valuation
- A buyer in Arizona closes on March 15. The annual property taxes are $4,380 and are paid in arrears. Using a 365-day year, how much does the seller owe the buyer in a tax proration (January 1 through March 14)?Real Estate Math
- Discount points paid on an Arizona mortgage loan:Finance
- A buyer's loan amount is $240,000. The lender charges an origination fee of 1.5%. How much is the origination fee?Real Estate Math
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Study This Topic
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →