Real Estate Math
A Massachusetts property sold for $520,000. The buyer paid 10% down and obtained a mortgage for the balance. The lender charges a 1% origination fee. What is the origination fee?
A$4,680✓ Correct
B$5,200
C$52,000
D$46,800
Explanation
Loan amount = $520,000 × 90% = $468,000. Origination fee = $468,000 × 1% = $4,680.
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