Real Estate Math

A buyer makes a 20% down payment on a $475,000 home. The lender charges 2 points. What is the total cash needed just for the down payment and points (before other closing costs)?

A$95,000
B$102,600✓ Correct
C$97,600
D$105,000

Explanation

Down payment = 20% × $475,000 = $95,000. Loan = $380,000.

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