Math help price of home

Question

the price of a home is 240000 the bank requires a 20% down payment and two points at the time of closing. the cost of the homes is financed with a 30 year fixed rate mortage at 6.5% how much must be paid for the two points at closing.

Answer 1

A "point" in this context is 1 percent (%) of the amount financed. If the down payment is 20 percent (%), then the amount financed is 80 percent (%) of 240,000 or 192,000 (units are not stated, but the math is the same for any currency). Then 2 points of 192,000 is 2 percent (%) of 192,000 = 3840. If the currency is dollars, then the points paid at closing would be $3840.