Real Estate Math
A NH buyer is offered two loan options: Option A — $280,000 at 7%, 30-year fixed. Option B — $280,000 at 6.5%, 30-year fixed with 2 points. One point = $2,800. How much extra upfront do they pay for Option B?
A$2,800
B$5,600✓ Correct
C$5,000
D$3,500
Explanation
Two points on $280,000 = 2 × 1% × $280,000 = 2 × $2,800 = $5,600 extra upfront for Option B. To solve this, multiply the relevant values: $280,000 and $280,000 at 7%.. The correct answer is $5,600.. This is a common calculation on the New Hampshire real estate exam.
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