What would be the fee for a buyer to purchase 2 discount points on a home with a sale price of $275,000?
To determine the fee for purchasing discount points on a home, we need to know the percentage cost of each discount point. In general, one discount point typically costs 1% of the total loan amount. However, it's important to note that the specific cost of discount points can vary depending on lender policies, market conditions, and negotiations.
For this question, the sale price of the home is $275,000, but we don't have information about the loan amount. The loan amount is the amount borrowed from the lender to purchase the home. Without knowing the loan amount, we can't calculate the exact fee for purchasing discount points.
To proceed, you will need to obtain information about the loan amount associated with the sale price of $275,000. This is typically provided by the lender or included in the loan documentation. Once you have the loan amount, you can calculate the fee for purchasing 2 discount points by multiplying the loan amount by 0.01 (1% per point) and then multiplying the result by 2.
Formula: Fee = Loan Amount * 0.01 * Number of Points
Please note that fee amounts may also be subject to additional factors like lender-specific policies or negotiations.