If you purchase a house worth $110,000 and make a 10 percent down payment,how much would 1 mortgage point cost at closing?

Question

Quizplus · Accepted Answer

First, we need to calculate the down payment.

10% of $110,000 = $11,000

Next, we need to calculate the loan amount:

$110,000 - $11,000 = $99,000

One mortgage point typically costs 1% of the loan amount, so:

1% of $99,000 = $990

Therefore, the answer is B) $990.

If You Purchase a House Worth $110,000 and Make a 10