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The lender will charge a one-and-a-half-point origination fee and two loan discount points.
What will be the total due for points on a $115,000 loan?
A) $1,725
B) $2,300
C) $4,025
D) $575


Sagot :

(c) $4025 is the correct option.

Banks charge origination points in exchange for reviewing, processing, and approving your home loan application. Origination points are not standardized and can be a flat fee, a percentage of your total loan amount, or none at all. Discount and origination points are two distinct charges Loan origination takes time. Banks must create all of the paperwork associated with a home loan, in addition to pulling your credit score, reviewing your bank statements, verifying your income and savings, and determining your creditworthiness. In exchange for all of this work, they'll charge you a fee. These fees are known as "origin points.".

learn more about point Origination here:

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