Megan is charged 2 points on a $120,000 loan at the time of closing. The orginal price of the home before the down payment was $140,000. How much do the points in dollars cost Megan?

Question

Megan is charged 2 points on a $120,000 loan at the time of closing.  The orginal price of the home before the down payment was $140,000.  How much do the points in dollars cost Megan?

anonymous · Answer

this is super easy

vocaloid · Answer

please don't be rude, something that might be easy for you might be difficult for someone else

@rlhoag anyway, back to the original question: 1 point means 1% of the loan, so 2 points is 2% of the loan

the loan is $120,000, so what is 2% of 120,000?

hint: 2% = 0.02