Answer:
$179,200
Explanation:
Given:
Value of the house = $800,000
Loan to value ratio = 80%
Discount points charged = 3
Thus,
the amount of down payment = 20% of the value of the house
or
the amount of down payment = 0.20 × $800,000 = $160,000
Now,
1 discount point is 1 percent of the loan amount ( 80% of the value of house)
thus,
for 3 discount points
amount charged = 3 × 0.01 × (0.8 × $800,000)
or
The amount charged as 3 discount points = $19,200
Hence,
at closing , the buyer should pay = $160,000 + $19,200 = $179,200
