In a transaction involving a $215,000 mortgage loan, how much would 1 point cost the borrower?

In real estate and financing, a point is typically defined as one percent of the total loan amount. In the case of a $215,000 mortgage loan, one point would be calculated by taking one percent of that amount.

To determine the cost of one point, you would perform the following calculation:

1% of $215,000 equals $2,150.

This means that if a borrower were to pay one point on their mortgage loan, it would indeed cost them $2,150. This calculation is essential for understanding loan origination fees and how they might affect the overall cost of borrowing, as points are often used to lower the mortgage interest rate and are paid upfront at closing. Thus, the correct amount corresponding to one point on a $215,000 loan is accurately reflected as $2,150.