Real Estate Math
A home is purchased for $480,000 with a 20% down payment. The buyer pays 1% of the loan amount as an origination fee. How much is the origination fee?
A$4,800
B$3,840✓ Correct
C$9,600
D$6,400
Explanation
Down payment = $480,000 × 20% = $96,000. Loan amount = $480,000 – $96,000 = $384,000. Origination fee = $384,000 × 1% = $3,840.
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