Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee

Sagot :

JeanaShupp

Answer: $3200

Explanation:

Given: Purchasing price of property = $400,000.

loan-to-value ratio = 80% = 0.80

∵ loan-to-value ratio = (loan amount)  ÷( Value of property)

⇒ 0.80 =  (loan amount)  ÷ (400000)

⇒ Loan amount = 0.80  x 400000 =$ 320,000

Origination fee = 1% of (Loan amount )

=  0.01 x ( 320000)

= $3200

Hence, the loan origination fee = $3200

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.