In the Henry–Susan transaction, what is the loan origination fee rate Henry agreed to pay?

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Multiple Choice

In the Henry–Susan transaction, what is the loan origination fee rate Henry agreed to pay?

Explanation:
Loan origination fee is the lender’s charge for processing and preparing the loan, typically shown as a percentage of the loan amount and paid at closing. In this scenario, Henry agreed to pay 1% of the loan amount as the origination fee, which is why the correct amount is 1%. This fee is separate from the interest rate and from any points used to buy down the rate; it’s simply the lender’s processing fee. The other percentages would reflect different terms, but the transaction specifies 1%.

Loan origination fee is the lender’s charge for processing and preparing the loan, typically shown as a percentage of the loan amount and paid at closing. In this scenario, Henry agreed to pay 1% of the loan amount as the origination fee, which is why the correct amount is 1%. This fee is separate from the interest rate and from any points used to buy down the rate; it’s simply the lender’s processing fee. The other percentages would reflect different terms, but the transaction specifies 1%.

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