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Real Estate Question

A buyer is purchasing a property for $500,000. He has a down payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if the lender charges one-and-a-half points? Please explain your work as well.

Answer Choices:
$5,000
$6,750
$750
$7,500

Respuesta :

Answer:

Amount of the loan origination fee = $7,500

Explanation:

Given:

Purchase cost of house = $500,000

Down payment cost = $50,000

Lender charges point = 1.5 points[%]

Find:

Amount of the loan origination fee

Computation:

Amount of the loan origination fee = Purchase cost of house x Lender charges point

Amount of the loan origination fee = 500,000 x 1.5%

Amount of the loan origination fee = $7,500

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