Real Estate Math
A West Virginia buyer obtains an 80% LTV loan on a $220,000 property. The lender charges 2 discount points. The dollar cost of the discount points is:
A$3,520✓ Correct
B$4,400
C$2,640
D$1,760
Explanation
Loan amount = $220,000 x 0.80 = $176,000. Two discount points = 2% x $176,000 = $3,520. To solve this, multiply the relevant values: $220,000 at 80%.. The correct answer is $3,520.. This is a common calculation on the West Virginia real estate exam.
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