Real Estate Math

A buyer in South Bend purchases a home for $185,000 with a 10% down payment. If the lender charges 1 origination point and 2 discount points, what is the total cost of points?

A$4,995✓ Correct
B$5,550
C$6,105
D$7,400

Explanation

Loan = $185,000 × 90% = $166,500. Total points = 3% × $166,500 = $4,995.

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