A buyer pays $315,000 for a home with a 10% down payment. The lender charges a 1% origination fee. What is the dollar amount of the origination fee?
Why $2,835 Is Correct
Answer B: $2,835
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Arizona Questions
- 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
- 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
- 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
- An investor buys a rental property for $450,000 with a 20% down payment. What is the loan amount?Real Estate Math
- An Arizona buyer obtains a conventional loan with a 10% down payment. The lender will likely require:Finance
- An Arizona homebuyer is obtaining an FHA loan. The minimum down payment required is typically:Finance
- Which type of loan would be most beneficial for an Arizona veteran purchasing a primary residence with no down payment?Finance
- A buyer purchases a home for $350,000 with a 20% down payment. What is the loan-to-value (LTV) ratio?Finance
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →