Final answer:
The borrower will have to pay $7,500 in points.
Step-by-step explanation:
In this scenario, the loan-to-value (LTV) ratio is given as 80%. To calculate the loan amount, multiply the home purchase price by the LTV ratio: $375,000 * 0.80 = $300,000. The points are calculated based on the loan amount, and since the lender is charging 2 points, the total points can be found by multiplying the loan amount by the points percentage: $300,000 * 0.02 = $6,000. Therefore, the borrower will have to pay $6,000 in points to secure the mortgage.
It's important to note that points are typically expressed as a percentage of the loan amount, with one point equal to 1% of the loan amount. In this case, the lender is charging 2 points, equivalent to 2% of the loan amount. To find the final amount the borrower has to pay in dollars, you multiply the loan amount by the points percentage (2% or 0.02): $300,000 * 0.02 = $6,000. However, it's crucial to remember that the points are a separate cost from the loan amount, so you add the points to the loan amount: $6,000 + $1,500 = $7,500. Therefore, the borrower will have to pay $7,500 in points to secure the mortgage loan.