Real Estate Math
A lender offers a 30-year fixed mortgage at 7.5% with 2 discount points on a $240,000 loan. What is the dollar cost of the points?
A$2,400
B$3,600
C$4,800✓ Correct
D$7,200
Explanation
1 point = 1% of loan amount = $240,000 × 1% = $2,400. 2 points = $2,400 × 2 = $4,800. To solve this, multiply the relevant values: $240,000 at 7.5%.. The correct answer is $4,800.. This is a common calculation on the South Dakota real estate exam.
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