Real Estate Math

A Vermont buyer obtains a $270,000 mortgage. The lender charges 1.5 points at origination. How much will the buyer pay in points at closing?

A$2,025
B$2,700
C$4,050✓ Correct
D$5,400

Explanation

Points = Loan Amount × Point Percentage = $270,000 × 0.015 = $4,050.

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