Question

Under the real property loan law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:

Answer 1

The correct answer to this question is that:
Under the real property loan, the maximum amount a borrower can pay for closing costs is $700.

The law states that the amount shall not exceed 5% of the principal amount of the loan or $390, whichever is greater but not exceeding $700.