Real Estate Math

A property is purchased for $600,000. The buyer makes a 20% down payment and finances the rest. The lender charges a 1% origination fee. What is the origination fee?

A$4,800✓ Correct
B$6,000
C$12,000
D$120,000

Explanation

Loan amount: $600,000 × (1 − 0.20) = $600,000 × 0.

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