A seller agrees to pay 3 points on a $200,000 home sale. How much will this cost the seller?

To determine how much the seller will pay in points, you first need to understand that one point represents 1% of the mortgage amount. In this case, the home sale price is $200,000. Therefore, you need to calculate 3 points, which amounts to 3% of the sale price.

First, calculate 1% of $200,000, which is $2,000. Then, to find 3% (or 3 points), you multiply $2,000 by 3.

$2,000 x 3 = $6,000.

Thus, the cost to the seller for 3 points on a $200,000 home sale is indeed $6,000, making this the correct answer. This cost is typically covered by the seller to make the mortgage more attractive to the buyer, as paying points can reduce the interest rate on a loan.