Real Estate Math
A buyer's closing costs include 2 discount points on a $180,000 mortgage. How much are the points?
A$900
B$3,600✓ Correct
C$1,800
D$360
Explanation
One discount point = 1% of the loan amount. 2 points = 2% x $180,000 = $3,600. Discount points are prepaid interest that reduce the loan's interest rate.
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