Real Estate Math
A North Dakota homeowner refinances their $260,000 mortgage at a lower rate. The lender charges 2 points. How much are the points in dollars?
A$2,600
B$4,600
C$5,200✓ Correct
D$6,500
Explanation
Points = Loan amount × Points percentage = $260,000 × 2% = $260,000 × 0.02 = $5,200. Using the values given ($260,000), apply the appropriate formula.. The correct answer is $5,200.. This is a common calculation on the North Dakota real estate exam.
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