Real Estate Math
A property sold for $650,000. The buyer put 25% down. At closing, the lender charged 0.5 points. What was the cost of points?
A$2,437.50✓ Correct
B$2,600.00
C$2,875.00
D$3,250.00
Explanation
Loan amount = $650,000 × 75% = $487,500. Points = $487,500 × 0.5% = $2,437.50. To solve this, multiply the relevant values: $650,000 at 25%.. The correct answer is $2,437.50.. This is a common calculation on the Ohio real estate exam.
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