Real Estate Math
A buyer takes out a $200,000 mortgage. The loan origination fee is 1 point. How much is the origination fee?
A$200
B$2,000✓ Correct
C$1,000
D$20,000
Explanation
1 point = 1% of the loan amount. $200,000 × 1% = $2,000. Using the values given ($200,000), apply the appropriate formula.. The correct answer is $2,000.. This is a common calculation on the Tennessee real estate exam.
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