Real Estate Math

A Wyoming property sold for $390,000 and had a 3-point origination fee. How much were the points?

A$3,900
B$9,000
C$11,700✓ Correct
D$39,000

Explanation

Points are calculated on the loan amount, not the sale price. If the buyer put 20% down: Loan = $390,000 x 80% = $312,000.

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