Tennessee Realtor State Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide.

To determine the loan origination fee when the lender charges one-and-a-half points, it is essential to first understand that a "point" is equal to 1% of the loan amount. In this scenario, the property’s purchase price is $500,000, and the buyer is putting down a down payment of $50,000.

To calculate the loan amount, subtract the down payment from the purchase price:

Loan Amount = Purchase Price - Down Payment

Loan Amount = $500,000 - $50,000

Loan Amount = $450,000

Next, we calculate the loan origination fee. Since the lender charges one-and-a-half points, we can determine that the fee is calculated as follows:

Loan Origination Fee = Loan Amount x Points

Loan Origination Fee = $450,000 x 1.5%

Loan Origination Fee = $450,000 x 0.015

Loan Origination Fee = $6,750

Thus, the correct answer is $6,750, which reflects the total amount that the buyer will need to pay for the loan origination fee based on the terms given by the lender.