Megan Mei is charged 2 points on a $120,000 loan at the time of closing. The original price of the home before the down payment was $140,000. The points in dollars cost Megan:
A)$2,400
B)$2,800
C)$4,200
D)$8,200
E)None of these

Question

Quizplus · Accepted Answer

Points are calculated based on the loan amount, not the original price of the home. 2 points on a $120,000 loan means 2% of $120,000, which is $2,400.

Megan Mei Is Charged 2 Points on a $120,000 Loan