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dexar [7]
2 years ago
9

A property sells for $120,000. the mortgage is $90,000 and the lender charges 3 points on the loan. how much is paid for the dis

count points?
Business
1 answer:
dimulka [17.4K]2 years ago
8 0

The amount paid for the discount points is $2,700

What do 3 points on the loan mean?

The 3 points mean that the borrower needs to pay 3% of the loan amount in order to enjoy a lower interest on the mortgage loan, in other words, the amount paid for the discount points is 3% of the loan amount of $90,000

amount paid for the discount=points*loan amount

loan amount=$90,000(not $120,000 which is the property purchase price)

amount paid for the discount=3%*$90,000

amount paid for the discount=$2,700

Find out more about discount points on://brainly.com/question/26040338

#SPJ1

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