Question

Becca is financing a house for $125,250. She has to pay $425 plus 1.25% for a brokerage fee.

How much are the mortgage brokerage fees?

$1,990.63

$3,556.25

$581.56

$1,565.63

Answer 1

For the brokerage fee, she has to pay 1.25% of the finance for the house with an additional $425. Expressing that into an equation would be,

Brokerage fee = 1.25%(Finance fee) + $425
Brokerage fee = 0.0125($125,250) + $425
Brokerage fee = $1990.63

The answer is A.