Question

A lender is charging 2.75 points on a $275,000 loan. The borrower must therefore pay the lender an advance amount of $11,000? $6,188? $7,563? $2,750?

Answer 1

A "point" is 1%, so the amount the lender is charging is
2.75% * $275,000 = $7,652.50
≈ $7653

Answer 2

It says lender is charging 2.75 points on a loan of $275,000.

we know that

1 point = 1%

So 2.75 points = 2.75 %

It means we have to find 2.75% of $275,000

or 2.75% * 275,000

or 0,0275 * 275,000

= 7562.5

≈ $7563

Hence , the borrower must therefore pay the lender an advance amount of $7563.