Real Estate Math

A NH property sells for $290,000. The buyer puts down 15%. The mortgage origination fee is 1% of the loan amount. What is the origination fee?

A$2,465✓ Correct
B$2,900
C$3,481
D$4,350

Explanation

Loan amount = $290,000 × (1 − 0.15) = $290,000 × 0.85 = $246,500. Origination fee = 1% × $246,500 = $2,465.

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