Question

A purchaser paid $75,000 for a house, putting 30% down and paying 3.5 discount points to the lender. How much was paid in points at closing?

a) $2,625
b) $2,250
c) $2,500
d) $2,750

Answer 1

The purchaser paid $2,625 in points at closing.

Step-by-step explanation:

To find out how much was paid in points at closing, we need to calculate 3.5% of the purchase price. The purchase price was $75,000 and the discount points are 3.5% of that.

To calculate the amount, we multiply $75,000 by 0.035:

\[75000 \times 0.035 = 2625\]

So, $2,625 was paid in points at closing.