Real Estate Math

A buyer in Missouri makes a 5% down payment on a $310,000 home and pays 2 discount points. What is the total cost of the discount points?

A$3,100
B$5,890✓ Correct
C$6,200
D$5,945

Explanation

Down payment = $310,000 × 5% = $15,500. Loan amount = $310,000 − $15,500 = $294,500. Each point = 1% of loan. 2 points = 2% × $294,500 = $5,890.

Related Missouri Real Estate Math Questions

Practice More Missouri Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Missouri Quiz →