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Question: 1 / 400

How much was the investor charged for the two points as a loan origination fee when purchasing the apartment building for $360,000?

5,400

6,480

7,200

To determine how much the investor was charged for the two points as a loan origination fee, it is important to know that one point is equal to 1% of the loan amount. In this scenario, if the apartment building is purchased for $360,000, and the investor is charged two points, we can calculate the fee as follows:

First, calculate the total amount represented by one point:

1% of $360,000 equals $3,600.

Next, since the investor is charged two points, you would multiply the amount of one point by two:

$3,600 (amount for one point) × 2 = $7,200.

Therefore, the investor was charged $7,200 as a loan origination fee for two points on the $360,000 purchase. This calculation correctly applies the concept of points to the loan origination process, illustrating how points are calculated as a percentage of the loan amount.

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