Real Estate Math

A lender charges 2 discount points and a 1% origination fee on a $350,000 loan. What is the total amount the borrower pays in points and origination fees at closing?

A$3,500

B$7,000

C$10,500✓ Correct

D$17,500

Explanation

Each point = 1% of loan amount. 2 discount points = 2% × $350,000 = $7,000. Origination fee = 1% × $350,000 = $3,500. Total = $7,000 + $3,500 = $10,500.

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