Real Estate Math
A buyer in NC makes a 20% down payment on a $375,000 home. The lender charges 1.5 origination points on the loan. How much are the origination fees?
A$5,625
B$4,500✓ Correct
C$7,500
D$3,750
Explanation
Loan amount = $375,000 × (1 – 0.20) = $375,000 × 0.80 = $300,000. Origination points = $300,000 × 0.015 = $4,500.
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