A buyer's loan amount is $240,000. The lender charges an origination fee of 1.5%. How much is the origination fee?
Why $3,600 Is Correct
Answer B: $3,600
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Arizona Questions
- 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?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
- A homebuyer in Arizona pays 2 discount points on a $240,000 loan. How much do the points cost?Finance
- An Arizona buyer obtains a conventional loan with a 10% down payment. The lender will likely require:Finance
- In Arizona, a lender who charges an interest rate above the legal maximum may be guilty of:Finance
- In Arizona, an FHA loan on a $340,000 property with 3.5% down payment requires an upfront MIP of 1.75%. What is the total upfront MIP amount?Real Estate Math
- An Arizona property sold for $350,000. The total commission rate is 6%. The listing broker and buyer's broker split the commission 50/50. How much does each broker receive?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
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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 →