Question

A mortgage is in the amount of $300,000. The origination fee is 0.7%, the intangible tax is 0.3%, and there are 2.3 discount points. Which of the following is the total cost of the origination fee, intangible tax, and discount points? (2 points)

$6,900

$3,000

$9,900

Answer 1

The total of the fees can be found by adding their percentages, then making one multiplication. (It can also be found by computing the individual fees.) Of course, 3.3% = 3.3/100 = 0.033.

$300,000 × (0.7% + 0.3% + 2.3%) = $300,000 × 3.3% = $9,900