Question

Steve is buying Darryl's house for $360,000. Steve's loan amount is $275,000. He has agreed to pay 2 points at closing. How much will Steve pay for points?

Answer 1

$5,500

Explanation:

Steve is Darrlyn house for $360,000

Steve loan amount $275,000

He agreed to pay 2 points at closing

Therefore the amount steve will pay for points can be calculated as follow

= 275,000 × 2/100

= 275,000 × 0.02

= 5,500

Hence Steve will pay $5,500