Real Estate Math

A Missouri home costs $245,000. The buyer qualifies for a USDA loan with 0% down. The USDA guarantee fee is 1% upfront. How much is the upfront fee?

A$2,000
B$2,450✓ Correct
C$2,500
D$3,000

Explanation

USDA upfront guarantee fee = $245,000 × 1% = $2,450. It can be financed into the loan. To solve this, multiply the relevant values: $245,000 at 0%.. The correct answer is $2,450.. This is a common calculation on the Missouri real estate exam.

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