Real Estate Math

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?

A$5,620

B$6,744✓ Correct

C$7,240

D$8,430

Explanation

Loan amount = $562,000 × 80% = $449,600. Origination fee = $449,600 × 1.5% = $6,744. To solve this, multiply the relevant values: $562,000 at 80%.. The correct answer is $6,744.. This is a common calculation on the Washington real estate exam.

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