what would be the fee for a buyer to purchase 2 discount points on a home with a sale price of 275,000
2 discount point on a home with a sale price of 275,000
To calculate the fee for purchasing discount points, we need to know the cost of each discount point. A discount point is generally equal to 1% of the loan amount. However, to calculate the fee, we also need to know the loan amount and the number of points being purchased.
Let's assume the loan amount is 80% of the sale price of the home. This means the loan amount would be $220,000 (80% of $275,000).
Now, if you want to purchase 2 discount points, we need to know the cost of each discount point. If each point is equal to 1% of the loan amount, then the cost of each point would be $2,200 ($220,000 * 0.01).
Finally, to calculate the fee for purchasing 2 discount points, we simply multiply the cost of each point by the number of points purchased. In this case, the fee would be $4,400 ($2,200 * 2).
Therefore, the fee for a buyer to purchase 2 discount points on a home with a sale price of $275,000 would be $4,400.