Real Estate Math

A New Mexico property is sold. The buyer's closing costs total $9,200. This amount includes 1.5 points on the $280,000 loan. What other closing costs are there beyond the points?

A$4,000
B$4,700
C$5,000✓ Correct
D$5,200

Explanation

1.5 points on $280,000 = $280,000 × 0.015 = $4,200. Other closing costs = $9,200 - $4,200 = $5,000. The answer is $5,000.

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