General Mortgage KnowledgeQuestion 130 of 400
A borrower pays 1.5 discount points on a $320,000 loan. What is the dollar cost of the points?
a.$3,200
b.$4,800
c.$4,000
d.$6,400
Explanation
Points cost = 1.5% x $320,000 = $4,800. $3,200 is one point, $6,400 is two points, and $4,000 does not match 1.5% of the loan.
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