Finance
A buyer pays 2 discount points on a $220,000 mortgage. How much does the buyer pay for points at closing?
A$2,200
B$4,400✓ Correct
C$6,600
D$8,800
Explanation
One discount point equals 1% of the loan amount. 2 points × 1% × $220,000 = $4,400. Using the values given ($220,000), apply the appropriate formula.. The correct answer is $4,400.. This is a common calculation on the Indiana real estate exam.
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