Real Estate Math

A buyer in Virginia purchases a home for $350,000 with a 10% down payment. The lender charges 2 discount points. What is the cost of the discount points?

A$3,500
B$6,300✓ Correct
C$7,000
D$8,750

Explanation

Loan amount = $350,000 × 90% = $315,000. Each discount point = 1% of the loan.

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