Answer: $70,880
Explanation:
The lender will loan out 80% of the value of the house:
= 240,000 * 80%
= $192,000
They will charge a loan origination fee of 1.5% so the net loan is:
= 192,000 * (1 - 1.5%)
= $189,120
The buyer needs $260,000 to complete the sale so the amount needed is:
= 260,000 - 189,120
= $70,880
