Final answer:
The borrower paid 2 points, as one point is equivalent to 1% of the loan amount, and the $3,000 payment divided by $1,500 (1% of the $150,000 loan) equals 2.
Step-by-step explanation:
The borrower is buying a house for $200,000 at an LTV (Loan to Value ratio) of 75%. This signifies that the borrower will get a loan amounting to 75% of the home's cost, which is $150,000 ($200,000 x 75%). When this borrower pays $3,000 in points, we need to determine how many points this represents.
One point is typically equal to 1% of the loan amount. Therefore, to calculate the number of points paid by the borrower, we would divide the amount paid in points by 1% of the loan amount:
Number of points = $3,000 / ($150,000 x 1%)
Number of points = $3,000 / $1,500
Number of points = 2
This means that $3,000 represents 2 points in this scenario.