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A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee
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A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee

User Khriz
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1 Answer

8 votes

Answer: $3200

Step-by-step explanation:

Given: Purchasing price of property = $400,000.

loan-to-value ratio = 80% = 0.80

∵ loan-to-value ratio = (loan amount) ÷( Value of property)

⇒ 0.80 = (loan amount) ÷ (400000)

⇒ Loan amount = 0.80 x 400000 =$ 320,000

Origination fee = 1% of (Loan amount )

= 0.01 x ( 320000)

= $3200

Hence, the loan origination fee = $3200

User Saed
by
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