Real Estate Math
A Des Moines condo sold for $215,000. The buyer paid 10% down. The lender charges 1.5 origination points. What is the origination fee?
A$2,903✓ Correct
B$2,948
C$2,867
D$2,801
Explanation
Loan amount = $215,000 × 90% = $193,500. Origination fee = $193,500 × 1.5% = $2,902.50 ≈ $2,903. To solve this, multiply the relevant values: $215,000 at 10%.. The correct answer is $2,903.. This is a common calculation on the Iowa real estate exam.
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