General Mortgage KnowledgeQuestion 162 of 400
On a $180,000 loan, a borrower pays 2.5 discount points. What is the cost?
a.$3,600
b.$4,500
c.$1,800
d.$5,400
Explanation
Cost = 2.5% x $180,000 = $4,500. $3,600 is two points, $1,800 is one point, and $5,400 is three points.
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