A property in Las Cruces sells for $320,000. The buyer obtains a conventional loan with an 80% loan-to-value ratio. The lender charges origination fees of 1.5% of the loan amount, and the New Mexico mortgage tax (mortgage recording fee) is $0.10 per $100 of the loan amount. What is the total of the origination fee plus the mortgage recording fee that the buyer must pay at closing?
Correct Answer
B) $4,096
Step 1: Calculate the loan amount: $320,000 x 80% = $256,000. Step 2: Calculate the origination fee: $256,000 x 1.5% = $3,840. Step 3: Calculate the mortgage recording fee: $256,000 / $100 = 2,560 units; 2,560 x $0.10 = $256. Step 4: Add the two costs: $3,840 + $256 = $4,096. The correct answer is B.
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Related Topics & Key Terms
Key Terms:
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