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A buyer is purchasing a property for $500,000. He has a down payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if the lender charges one-and-a-half points?

Sagot :

anthougo

The amount of the loan origination fee if the lender charges one-and-a-half points is $6,750.

What is Loan Origination Fee?

The loan origination fee is the upfront payment that a borrower is charged for loan processing.

Usually, most lenders charge between 0.5% and 1% of the loan amount plus any mortgage points.

Data and Calculations:

Property value = $500,000

Down payment = $50,000

Loan (Mortgage) = $450,000

Origination fee = 1.5 points

= $6,750 ($450,000 x 1.5%)

Thus, the amount of the loan origination fee if the lender charges one-and-a-half points is $6,750.

Learn more about loan origination fees at https://brainly.com/question/13940326

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