FinancingInterest_and_payment_calculationsMEDIUM
A lender offers Maya a credit of negative 0.625 points on a $288,000 loan. How much lender credit would that provide toward her closing costs?
Correct Answer
C) $1,800
Step 1: Convert 0.625 points to 0.625% or 0.00625. Step 2: $288,000 × 0.00625 = $1,800. A negative-point pricing credit of 0.625 therefore equals $1,800 toward closing costs.
Answer Options
A
$1,125B
$1,440C
$1,800D
$1,620Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
lender_creditsnegative_pointsclosing_costsloan_pricing
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