Real Estate Math
A buyer purchases a $425,000 home with a 15% down payment. If the lender charges 1.5 points at closing, how much is paid in points?
A$5,419✓ Correct
B$6,375
C$5,525
D$6,800
Explanation
Loan amount = $425,000 × (1 − 0.15) = $425,000 × 0.85 = $361,250. Points = $361,250 × 1.5% = $5,418.75 ≈ $5,419.
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