Real Estate Math
A borrower pays 2 points on a $320,000 loan. What is the dollar cost of the points?
A$3,200
B$6,400✓ Correct
C$9,600
D$12,800
Explanation
1 point = 1% of the loan. 2 points = 2% × $320,000 = $6,400.
People Also Study
Related Georgia Questions
- When a Georgia borrower pays off their mortgage (security deed), the lender must execute and deliver a:Escrow & Title
- A Georgia borrower takes out a $320,000 security deed. The intangible recording tax is $1.50 per $500 of the loan amount. What is the total intangible tax?Real Estate Math
- A lender charges 2 origination points and 1 discount point on a $320,000 mortgage. What is the total dollar amount of points charged?Real Estate Math
- A Georgia property sells for $520,000. The buyer pays 20% down. The lender charges 3% origination fee on the loan. What is the origination fee?Real Estate Math
- A $400,000 mortgage at 6% annual interest, 30-year term, has a monthly payment factor of $5.996 per $1,000. What is the approximate monthly P&I payment?Real Estate Math
- A buyer purchases a home for $380,000 with a 20% down payment. The lender charges 1.5 discount points. What is the dollar amount of the discount points?Real Estate Math
- A borrower's gross monthly income is $7,500. Using a 28% front-end ratio, what is the maximum monthly PITI payment the lender would approve?Real Estate Math
- A house rents for $1,800/month. Using a GRM of 130, what is the estimated value of the property?Real Estate Math
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Study This Topic
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →