Megan Mei is charged 2 points on a $120,000 loan at time of closing. The original price of the home before the down payment was $140,000. The points in dollars cost Megan:
a)$2,400b)$2,800c)$4,200d)$8,200e)None of these

Question

Megan Mei is charged 2 points on a $120,000 loan at time of closing. The original price of the home before the down payment was $140,000. The points in dollars cost Megan:
a)$2,400b)$2,800c)$4,200d)$8,200e)None of these

slaaibak · Answer

I'm not sure what you mean by "charged 2 points"

anonymous · Answer

it means 2% of the mortgage.

anonymous · Answer

I don't know if it is off the 120,000 or the 140,000?

slaaibak · Answer

Well, I'd say it's on the 120 000, since the sentence says "2 points on a $120,000 loan"

So I'd go with 2400

anonymous · Answer

Thanks.  how do you get points for helping me?

slaaibak · Answer

I don't think I do