Question

Dave decided to purchase 3 points in order to lower his interest rate on his $124,000 mortgage. How much money does he need to bring to closing

Answer 1

$3,720

Explanation:

To answer this question properly, you need to know that a Mortgage point is equivalent to 1% of the mortgage value. In this case, Dave has decided to buy 3 points, i.e. 3% of $124,000 is equal to $3,720. That's how much He needs to bring to closing.