Finance
A Washington lender charges 2 discount points on a $320,000 loan. How much does the borrower pay in points at closing?
A$3,200
B$6,400✓ Correct
C$9,600
D$1,600
Explanation
Each discount point equals 1% of the loan amount. 2 points × 1% × $320,000 = $6,400.
People Also Study
Related Washington Questions
- A Washington seller agrees to pay two discount points to buy down a buyer's interest rate. If the loan amount is $380,000, what is the cost of the points?Finance
- A Washington lender charges origination fees and discount points at closing. Under TRID, these must be itemized on the:Finance
- A Washington property sold for $562,000 and the buyer obtained an 80% loan. The lender charges 1.5 origination points. What is the origination fee?Real Estate Math
- A Washington buyer puts 5% down on a $410,000 home. The lender charges 0.8% monthly PMI on the loan. What is the monthly PMI amount?Real Estate Math
- A Washington lender who discovers after loan closing that the borrower misrepresented their income may:Finance
- A Washington buyer's loan officer discusses 'buying down the rate' by paying points. Generally, one discount point lowers the interest rate by approximately:Finance
- A Washington commercial property manager calculates a tenant's proportionate share of common area maintenance (CAM) charges using the tenant's:Property Management
- A buyer in Washington purchases a home for $480,000 with a 15% down payment. What is the loan amount?Real Estate Math
Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →