Real Estate Math

A Wyoming property sells for $390,000. The buyer pays 20% down. The lender charges an origination fee of 1% of the loan amount. What is the origination fee?

A$2,340
B$2,820
C$3,000
D$3,120✓ Correct

Explanation

Loan amount = $390,000 × 80% = $312,000. Origination fee = $312,000 × 1% = $3,120. To solve this, multiply the relevant values: $390,000 at 20%.. The correct answer is $3,120.. This is a common calculation on the Wyoming real estate exam.

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