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A building was purchased for $350,000 with a 20% down payment. If the lender charged the buyer three discount points, how much will the buyer need to close?
Suggested Answer: C
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21 comments · newest first
TR
Trina
1 month ago
I agree with A) $61,600. The points add up!
ER
Erinn
1 month ago
D) $360,500 is way too high, right?
GA
Gail
1 month ago
I calculated it and got A) $61,600 too.
SH
Shayne
2 months ago
C) $80,500 seems right to me.
MA
Maxima
2 months ago
I feel like it's B) $78,400.
CO
Corinne
2 months ago
I think it's A) $61,600.
LI
Lisbeth
2 months ago
I’m confused! Can someone explain the points?
PE
Pearlie
2 months ago
Don’t forget the points! B) makes sense with that.
DE
Delbert
2 months ago
I feel like it’s A) too. The down payment is key.
LI
Lindsey
3 months ago
C) $80,500 seems right to me.
IN
In
3 months ago
I’m leaning towards B) $78,400.
BR
Brock
3 months ago
I think it’s A) $61,600.
SO
Sommer
3 months ago
Definitely going with B, looks right to me!
AN
Anabel
3 months ago
Wait, are we sure about those points? Seems off.
TI
Titus
4 months ago
I think the total closing costs are way higher than that!
GE
Gertude
5 months ago
Three discount points means 3% of the loan amount.
UN
Una
5 months ago
The down payment is $70,000.
GA
Gayla
6 months ago
I feel like I might be mixing up the terms here. Are discount points added to the closing costs or deducted from the loan amount?
EU
Eun
6 months ago
I practiced a similar question last week, and I think the total closing cost includes the down payment plus the points, but I can't recall the exact formula.
CO
Corrina
6 months ago
I think the down payment is 20% of $350,000, which is $70,000, but I need to double-check the points calculation.
BO
Boris
6 months ago
I remember something about calculating down payments, but I'm not sure how to factor in the discount points.