Real Estate Math
A Montana buyer puts 10% down on a $275,000 home and pays a 0.5% origination fee. What is the origination fee in dollars?
A$1,237.50✓ Correct
B$1,375
C$2,750
D$1,200
Explanation
Loan amount = $275,000 × 90% = $247,500. Origination fee = $247,500 × 0.5% = $1,237.50. To solve this, multiply the relevant values: $275,000 at 10%.. The correct answer is $1,237.50.. This is a common calculation on the Montana real estate exam.
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