Real Estate Math

A Virginia buyer is taking a $275,000 loan at 6% for 30 years. The lender charges 2 points. What is the total upfront cost of the points?

A$4,125
B$5,500✓ Correct
C$5,250
D$2,750

Explanation

Points = 2% × $275,000 = $5,500. To solve this, multiply the relevant values: $275,000 at 6%..

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