A lender offers a $320,000 loan. The borrower must pay a 1% origination fee plus 1.5 discount points. What is the total upfront cost of these fees?
Correct Answer
C) $8,000
Step 1: Origination fee = $320,000 × 1% = $3,200. Step 2: Discount points = $320,000 × 1.5% = $4,800. Step 3: Total = $3,200 + $4,800 = $8,000.
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Related Topics & Key Terms
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Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
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