The buyer agrees to pay $90,000 for a home, contingent upon obtaining an 80% loan. The lender charges $3,600 for points. How many points were charged?
A) 2 points
B) 4 points
C) 5 points
D) 6 points

Name: The buyer agrees to pay $90,000 for a home, contingent upon obtaining an 80% loan. The lender charges $3,600 for points. How many points were charged? A) 2 points B) 4 points C) 5 points D) 6 points
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Question

Quizplus · Accepted Answer

The loan amount = 90,000 × .80 = 72,000.3,600/72,000 = 5.

The Buyer Agrees to Pay $90,000 for a Home, Contingent