Real Estate Math
A Florida homebuyer obtains a loan with 2 discount points on a $200,000 mortgage. What is the cost of the points at closing?
A$2,000
B$4,000✓ Correct
C$6,000
D$8,000
Explanation
Each discount point equals 1% of the loan amount. 2 points × 1% × $200,000 = $4,000. Discount points are prepaid interest used to buy down the interest rate.
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