46. A house sold for $45,000. A VA loan for $37,000 was obtained with 4 points being charged. How much would be charged for points at closing?
Answer: B
The amount charged for points at closing would be $1,480.
Points are calculated as a percentage of the loan amount. In this case, 4 points on a VA loan of $37,000 results in a charge of $1,480 at closing.
A) $925
This option represents an incorrect calculation of points. To find the charge for points, you would need to multiply the loan amount by the percentage of points (4%). This option does not reflect that calculation.
B) $1,480
This option is correct. The calculation for points is 4% of $37,000, which equals $1,480. Therefore, this amount is accurately derived from the loan amount and the points charged.
C) $1,800
This choice is incorrect as it does not align with the calculation for points. The charge for points is specifically based on the 4% of the loan amount, which does not yield $1,800.
D) $3,200
This option is also incorrect. The amount of $3,200 does not correspond to any calculation based on the provided loan amount and points. It exceeds the calculated amount for 4 points on a $37,000 loan.
Conclusion
The correct charge for points at closing is $1,480, as it directly results from calculating 4% of the $37,000 VA loan. The other options fail to accurately represent this calculation, demonstrating a misunderstanding of how points are applied based on the loan amount.