Finance
A Kentucky property purchaser who buys a home for $350,000 with a $280,000 mortgage pays 2.5 discount points. The total cost of the points is:
A$5,250
B$6,500
C$7,000✓ Correct
D$8,750
Explanation
Points are based on the loan amount: 2.5% × $280,000 = $7,000. Using the values given ($350,000, $280,000), apply the appropriate formula.. The correct answer is $7,000.. This is a common calculation on the Kentucky real estate exam.
Related Kentucky Finance Questions
- Regulation Z (Truth in Lending) in Kentucky provides borrowers the right to rescind (cancel) certain mortgage transactions within:
- Kentucky's mortgage recording tax is charged when:
- A Kentucky borrower refinances their home to take out equity for renovations. This type of refinancing is called:
- A Kentucky rural property buyer using a USDA guaranteed loan must meet income limits. The maximum household income allowed is:
- Under RESPA, a Kentucky lender is prohibited from requiring the buyer to use a specific:
- Kentucky's usury laws historically capped interest rates on certain loans. Today, for real estate loans in Kentucky:
- Which federal law gives borrowers the right to receive a copy of their credit report when credit is denied?
- Predatory lending practices in Kentucky are prohibited under:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →