Question

Alyssa purchased a house for 243,000 and obtained a mortgage for 231,000. she purchased 5 discount points and 4 origination points. what is the cost for each?

Answer 1

It should be noted that:

1 point = 1% = 0.01

Therefore,
Cost of points = Number of points*0.01*Mortgage

Substituting;
Cost of discount points = 5*0.01*231,000 = $11,550
Cost of originating points = 4*0.01*231,000 = $9,240