Question

A "point" is 1% of your borrowed amount on a mortgage. You want to pay 2 points to get a 0.5% reduction in your interest rate on a $175,000 mortgage. How much will you pay in points?

Answer 1

Hi there:)

One point is 1%
Two points 2%

You want to pay two points so
175,000×0.02=3,500 ....answer

Hope it helps