Real Estate Math
A Washington buyer agrees to pay $525,000 for a home and puts down $52,500. The lender charges a 1% origination fee. What is the origination fee?
A$472.50
B$4,725.00✓ Correct
C$5,250.00
D$52,500.00
Explanation
Loan amount = $525,000 − $52,500 = $472,500. Origination fee = $472,500 × 1% = $4,725. To solve this, multiply the relevant values: $525,000 and $52,500 at 1%.. The correct answer is $4,725.00.. This is a common calculation on the Washington real estate exam.
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