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

Question

zzz [600]

3 years ago

13

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?

Mathematics

1 answer:

eduard · Answer 1 · 2022-04-11T09:43:06+03:00

eduard3 years ago

4 0

A point is 1% of your borrowed amount on a mortgage.
mortgage loan = 175,000

175,000 x 1% = 1,750 per point

1750 x 2 = 3,500 is the amount paid for the 2 points.