Real Estate Math
A home sells for $380,000 and the buyer makes a 20% down payment. The lender charges 1.5 points. What is the dollar cost of points?
A$4,560✓ Correct
B$5,130
C$5,700
D$6,000
Explanation
Loan amount = $380,000 × 80% = $304,000. Points = $304,000 × 1.5% = $4,560. To solve this, multiply the relevant values: $380,000 at 20%.. The correct answer is $4,560.. This is a common calculation on the Ohio real estate exam.
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