CRAM ARCADE Open App

A lender charges a 1% origination fee on a $300,000 loan. The borrower also pays $2,500 in discount points. What is the total origination-related cost?

Loan Origination Activities · 27% of the SAFE exameasy

$3,000 $6,000 $5,500 $3,500

Show the answer and explanation

Correct answer: $5,500

Origination fee: $300,000 × 1% = $3,000. Plus discount points: $2,500. Total: $3,000 + $2,500 = $5,500. Both are lender-related costs that appear on the Closing Disclosure.