Real Estate Math
A property is purchased for $550,000 with a 20% down payment. The loan origination fee is 1 point. How much is the origination fee?
A$5,500
B$4,400✓ Correct
C$11,000
D$440
Explanation
Loan amount = $550,000 × 0.80 = $440,000. One point = 1% of loan = $440,000 × 0.01 = $4,400.
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