If you purchase a $220,000 and make a 20% down payment,how much would 1 point cost at closing?
A)$440
B)$1,000
C)$1,760
D)$2,000
E)$2,200

Question

Quizplus · Accepted Answer

20% of $220,000 is $44,000, which is the amount paid as a down payment.
The loan amount is $176,000 ($220,000 - $44,000).
Assuming each point costs 1% of the loan amount, 1 point would cost $1,760 ($176,000 x 0.01). Therefore, the best choice is C, $1,760.

If You Purchase a $220,000 and Make a 20% Down