Real Estate Math
A Michigan buyer's purchase price is $350,000. They pay 5% down. The lender charges 1.5% origination fee on the loan amount. What is the origination fee?
A$4,988✓ Correct
B$5,250
C$4,462
D$5,512
Explanation
Down payment = 5% x $350,000 = $17,500. Loan amount = $332,500. Origination fee = 1.5% x $332,500 = $4,987.50, approximately $4,988.
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