Question

A bank charges 1.75 of a point for the origination fee on a mortgage of $400,000. What is the origination fee?

$7,000

$700

$1,750

$17

Answer 1

If I remember correctly a point is 1%

Answer 2

so 1.75 of a point sounds like it's 1.75 times larger than 1%, so it would be 1.75*1 = 1.75% = 0.0175

multiply this by the amount loaned out to get your answer

Answer 3

0.0175 * 400,00 ?

Answer 4

yes

Answer 5

0.0175 * 400,000 actually, but you have the right idea

Answer 6

Thanks man :D

Answer 7

np