Real Estate Math
A buyer obtains a $175,000 mortgage. The origination fee is 1 point. How much is the origination fee?
A$1,250
B$1,750✓ Correct
C$2,100
D$2,500
Explanation
1 point = 1% of the loan amount. Origination fee = $175,000 × 0.01 = $1,750. Using the values given ($175,000), apply the appropriate formula.. The correct answer is $1,750.. This is a common calculation on the Arkansas real estate exam.
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