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.
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