How much will the loan origination fee be for a buyer obtaining a 90% loan on a home appraised at $80,000 with a one point origination fee?

To calculate the loan origination fee, you first need to determine the loan amount based on the percentage of the home's value. Since the buyer is obtaining a 90% loan on a home appraised at $80,000, you can calculate the loan amount by multiplying $80,000 by 0.90:

$80,000 x 0.90 = $72,000

The one-point origination fee is typically calculated as 1% of the loan amount. Therefore, to find the fee, you would take 1% of the $72,000 loan amount:

$72,000 x 0.01 = $720

This means the correct origination fee that the buyer will pay for the loan is $720. This understanding of calculating percentages and origination fees is crucial for anyone working in real estate financing.