California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

If Borrower A has to pay 2.5 points on a $390,000 property with an LTV of 80%, how much is owed in points?

$7,800
$9,750
$6,500
$10,200

The correct answer is: $7,800

Option B is incorrect because it would be the amount owed for 3 points, which is not specified. Option C is incorrect because it would be the amount owed for 2 points, which is a lower percentage of the property value. Option D is incorrect because it would be the amount owed for 2.5 points on the total loan amount, rather than the property value.