Real Estate Math

A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?

A$2,475✓ Correct
B$2,750
C$27,500
D$247.50

Explanation

Down payment = $275,000 × 10% = $27,500. Loan amount = $275,000 − $27,500 = $247,500. Origination fee = 1% × $247,500 = $2,475.

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