Real Estate Math

A property is valued at $750,000. The buyer puts down 25% and finances the balance. At closing, the lender charges 1.5 points. How much does the buyer pay in points?

A$8,437.50✓ Correct
B$11,250
C$5,625
D$7,500

Explanation

Loan amount: $750,000 × 0.75 = $562,500.

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