Answered

IDNLearn.com: Where your questions are met with thoughtful and precise answers. Get the information you need from our community of experts who provide accurate and comprehensive answers to all your questions.

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee

Sagot :

JeanaShuppidn

Answer: $3200

Explanation:

Given: Purchasing price of property = $400,000.

loan-to-value ratio = 80% = 0.80

∵ loan-to-value ratio = (loan amount)  ÷( Value of property)

⇒ 0.80 =  (loan amount)  ÷ (400000)

⇒ Loan amount = 0.80  x 400000 =$ 320,000

Origination fee = 1% of (Loan amount )

=  0.01 x ( 320000)

= $3200

Hence, the loan origination fee = $3200

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. IDNLearn.com is dedicated to providing accurate answers. Thank you for visiting, and see you next time for more solutions.