A seller in North Carolina agrees to pay 3 discount points on the buyer's $250,000 loan. How much will the seller pay?
Why $7,500 Is Correct
Answer B: $7,500
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related North Carolina Questions
- How many hours of pre-license education are required to sit for the North Carolina broker license exam?North Carolina License Law
- How many questions are on the North Carolina real estate broker licensing exam?North Carolina License Law
- What is the minimum passing score on the North Carolina real estate licensing exam?North Carolina License Law
- In North Carolina, which of the following is a characteristic of tenancy in common?Property Ownership
- Discount points on a mortgage loan are used to:Finance
- A North Carolina buyer is purchasing a $300,000 home with 5% down. What is the loan amount?Finance
- An FHA loan in North Carolina requires a minimum down payment of:Finance
- A VA loan in North Carolina is available to eligible veterans and offers:Finance
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →