Real Estate Math
A Michigan buyer is purchasing a $275,000 home with 10% down. The lender charges 1 origination point. What is the origination fee?
A$2,750
B$2,475✓ Correct
C$275
D$24,750
Explanation
Loan amount: $275,000 - $27,500 (10% down) = $247,500. Origination point: 1% × $247,500 = $2,475.
Related Michigan Real Estate Math Questions
- A Michigan broker charges a 6% commission on a $390,000 sale. The listing office keeps 55% of the total commission. How much does the listing office receive?
- A Michigan property rents for $1,800/month. Annual expenses are $7,200. What is the annual net operating income?
- A Michigan home was appraised at $240,000. The lender requires an 80% LTV. The purchase price is $250,000. What is the maximum loan amount?
- A Michigan seller paid $3.75/$500 state transfer tax on a sale. If the total state tax was $2,625, what was the sale price?
- A Michigan triplex generates $900/month per unit. Annual operating expenses total $12,000. What is the NOI?
- A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
- A Michigan property sold for $180,000. The seller paid $3.75 per $500 in state transfer tax. How much state transfer tax did the seller pay?
- A Michigan property is listed at $250,000. The seller agrees to pay a 6% commission. What is the total commission?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →