Finance
A Mississippi home buyer takes out a $250,000 mortgage. At closing, they pay 2 discount points. The total dollar amount paid in points is:
A$2,500
B$4,000
C$5,000✓ Correct
D$3,000
Explanation
One point = 1% of the loan amount. 2 points = 2% × $250,000 = $5,000. Using the values given ($250,000), apply the appropriate formula.. The correct answer is $5,000.. This is a common calculation on the Mississippi real estate exam.
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