If a man is borrowing $165,150 and pays 1 discount point and a broker fee of 2.5%, what is his total payment in fees?

If a man is borrowing $165,150 and pays 1 discount point and a broker fee of 2.5%, what is his total payment in fees?

• A. $4,500
• B. $5,780
• C. $6,500
• D. $7,200

Answer: (B)

To determine the total payment in fees for the man borrowing $165,150, we need to calculate both the cost of the discount point and the broker fee. One discount point typically costs 1% of the loan amount. In this case, 1 discount point on a loan of $165,150 would be: 1% of $165,150 = $1,651.50. Next, to calculate the broker fee at a rate of 2.5%, we take 2.5% of the loan amount: 2.5% of $165,150 = 0.025 * $165,150 = $4,128.75. Now, we can sum the two amounts to find the total payment in fees: Total fees = Discount point + Broker fee Total fees = $1,651.50 + $4,128.75 = $5,780.25. When rounded to the nearest dollar, this results in a total fees payment of $5,780. Therefore, the correct answer is $5,780, as it accurately reflects the total cost incurred from both the discount point and the broker fee associated with the loan.

To determine the total payment in fees for the man borrowing $165,150, we need to calculate both the cost of the discount point and the broker fee.

One discount point typically costs 1% of the loan amount. In this case, 1 discount point on a loan of $165,150 would be:

1% of $165,150 = $1,651.50.

Next, to calculate the broker fee at a rate of 2.5%, we take 2.5% of the loan amount:

2.5% of $165,150 = 0.025 * $165,150 = $4,128.75.

Now, we can sum the two amounts to find the total payment in fees:

Total fees = Discount point + Broker fee

Total fees = $1,651.50 + $4,128.75 = $5,780.25.

When rounded to the nearest dollar, this results in a total fees payment of $5,780.

Therefore, the correct answer is $5,780, as it accurately reflects the total cost incurred from both the discount point and the broker fee associated with the loan.