A Texas homestead valued at $800,000 has a first mortgage of $480,000. The homeowner takes the maximum home equity loan. The lender charges the maximum 3% fee. What is the total fee amount?
Correct Answer
C) $4,800
Max total liens = $800,000 × 0.80 = $640,000. Max HEL = $640,000 − $480,000 = $160,000. Fee = $160,000 × 0.03 = $4,800.
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A Texas veteran uses the VLB home loan program to purchase a home for $250,000. The VLB charges 1 origination point. How much does the veteran pay in origination fees?
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A Texas reverse mortgage borrower has a homestead valued at $300,000 with no existing liens. Under the 80% LTV rule, the lender offers a reverse mortgage equal to 50% of the maximum allowed. How much will the borrower receive?