Question

a buyer of a house with a sales price of $100,000 is paying a $10,000 down payment as well as 2 discount points and 2 points for loan origination fees. What is the total cost of the points?

Answer 1

total cost of the points is $3600

Step-by-step explanation:

given data

sales price = $100,000

paying = $10,000

discount points = 2

loan origination fees = 2 point

to find out

total cost of the points

solution

we know here total point is 2 + 2 = 4

and here 1 point is 1 % of loan amount

loan amount is = sale price - paying

loan amount = 100000 - 10000 = $90000

so 1 point is 1% of $90000 = $900

4 point mean 4 × $900 = $3600

so that here for 4 point

total cost of the points is $3600