Question

Which of the following is true?

A) Loan origination fees are around 10-20 percent.
B) Loan application fees range from $100 to $500.
C) Points are $100-$200 per $1,000 of the home's value.
D) Appraisal costs range between 15-20% of the value of the house.

Answer 1

Points are $100-$200 per $1,000 of the home's value.

Step-by-step explanation:

The correct option is C) Points are $100-$200 per $1,000 of the home's value.

Points are a type of fee charged by lenders at the time of mortgage origination.

One point is equal to 1% of the loan amount.

These points can be used to lower the interest rate on the mortgage. Generally, each point costs between $1,000 and $2,000 per $100,000 borrowed.