Real Estate Math

A Connecticut buyer puts 10% down on a $395,000 home. The lender charges 1.5 discount points. How much does the buyer pay in points?

A$5,925
B$3,950
C$5,333✓ Correct
D$4,500

Explanation

Loan amount = $395,000 × 90% = $355,500. Points = $355,500 × 1.

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