Real Estate Math

A Nebraska buyer's offer of $285,000 is accepted. The lender requires a 25% down payment. The buyer also pays 1.5 points on the loan amount. What is the total cash needed for down payment and points?

A$74,456.25✓ Correct
B$71,250.00
C$76,000.00
D$72,000.00

Explanation

Down = $285,000 × 25% = $71,250. Loan = $285,000 − $71,250 = $213,750. Points = $213,750 × 1.5% = $3,206.25. Total = $71,250 + $3,206.25 = $74,456.25.75.

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