Real Estate Math

A Nevada buyer puts 10% down on a $320,000 home and pays 2 discount points. What is the total upfront cost (down payment plus points)?

A$32,000
B$38,400
C$38,380
D$37,760✓ Correct

Explanation

Down payment = 10% x $320,000 = $32,000. Loan amount = $288,000. Points = 2% x $288,000 = $5,760. Total upfront = $32,000 + $5,760 = $37,760.

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