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Ed wants to buy a property for $320,000 and wants a CPM loan for 80%.

Ed wants to buy a property for $320,000 and wants a CPM loan for 80%. A lender indicates the loan can be obtained for 30 years at 5.5% with an origination loan fee of $1,200 and 2 points.

How much will the lender actually disburse?

$249,680

$254,800

$256,000

$248,400

$312,400

Solutions

Expert Solution

- Price of Property = $320,000

Loan amount = Price of Property*80% = $320,000*80%

Loan amount = $256,000

- Lender will take an origination loan fee of $1200 and 2 points

Disbursement amount of loan = Loan Amount*(1- % of points) - Origination loan fee

Disbursement amount of loan = $256,000*(1-0.02) - $1200

Disbursement amount of loan = $249,680

Option 1

jeff jeffy answered 2 years ago
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