Finance
A Connecticut buyer wants to compare two 30-year mortgages: Loan A at 6.75% with no points, Loan B at 6.50% with 2 points on a $400,000 loan. How much do the 2 points cost on Loan B?
A$4,000
B$6,000
C$8,000✓ Correct
D$10,000
Explanation
One point = 1% of the loan amount. Two points = 2% × $400,000 = $8,000.
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