Real Estate Math

A New Mexico home sells for $385,000. The buyer pays 1 origination point and 0.5 discount points on their $300,000 loan. What are the total points cost?

A$3,000
B$4,500✓ Correct
C$5,250
D$6,000

Explanation

Total points = 1.5% of $300,000 = $300,000 × 0.015 = $4,500. Using the values given ($385,000, $300,000), apply the appropriate formula.. The correct answer is $4,500.. This is a common calculation on the New Mexico real estate exam.

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