Final answer:
The loan origination fee is calculated based on 80% of the appraised value of $220,000, which amounts to a loan of $176,000. One point is 1% of the loan amount, so the fee is $1,760.
Step-by-step explanation:
The question involves calculating the loan origination fee based on an 80% loan-to-value ratio of the house's appraised value and a one point origination fee. Although the house sold for $250,000, the lender's appraiser valued the house at $220,000. The loan amount would be 80% of the appraised value, which is $176,000 (80% of $220,000). The one-point origination fee is based on this loan amount and not the sales price. One point is equal to 1% of the loan amount. Therefore, the origination fee would be 1% of $176,000, which is $1,760.