Today in “Spruce Answers” I’m going over the real estate math licensing concept of the discount point. This is easier than you might think . The question is… “If a house was sold for $360,000 and the buyer obtained a mortgage loan for $288,000, how much money would the buyer pay in discount points if the lender charged two points?”
What are the steps to solving this discount point math question?
I like this one because this is a pretty easy question. That is as long as you know the concept of a discount point. And since I’m trying to show how the concepts of these questions can be related to many variations why don’t I illustrate this concept here.
That said, the discount point is one percent…. Now there’s two twists on this within this question. One, it’s giving you two numbers to try and throw you off…. One of which you ignore because, well, it wants 1% of the loan amount and only one of those numbers is the loan amount.
It says the guy obtained a mortgage for $288,000 and that’s the number we now take 1% of. So…
Let’s calculate that… 1% of 288,000 is $2,880
Now the second twist… it says he is getting charged two points…. So… that’s 2%…. The way I do that is simply multiplying 2,880 by 2 which is $5760. Seems way more complicated than it is but if you know that a discount point is 1% you’re good to go.
Is this an easy breakdown?
Now that you’ve seen this breakdown, If you’re looking to get a real estate license in West Virginia you’ve come to the right place. Did you know that Spruce School of Real Estate has been teaching learners how to pass the WV Real Estate License Exam for over 25 years now? It has and we take pride in our presentations and easy breakdown for every kind of learning style. If you found this video tutorial helpful I think you’ll find Spruce School of Real Estate to be a smart choice for helping you learn the sometimes difficult concepts within. Feel free to find out more at https://sprucerealestateschool.com
Feel free to also check us out on Facebook here and get more info on the best real estate school in the state of WV and access to a live instructor 7 days a week.