Certified Relocation Professional (CRP) Practice Exam

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Enhance your relocation knowledge and skills with the CRP Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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

$1,200
$2,400
$4,800
$6,000

The correct answer is: $4,800

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.