General Mortgage KnowledgeQuestion 102 of 400
On a $250,000 loan, the borrower pays 2 discount points. How much do the points cost at closing?
a.$2,500
b.$5,000
c.$500
d.$7,500
Explanation
One point equals 1% of the loan amount, so 2 points = 2% x $250,000 = $5,000. $2,500 is only one point; $500 and $7,500 do not match 2% of the loan.
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