A buyer is financing a $300,000 loan with a lender charging 1.5% as an origination fee. What will the loan origination fee be?

Study for the Indiana 90-Hour Broker Course Exam. Master key concepts with multiple-choice questions, detailed explanations, and expert tips. Prepare thoroughly for success!

To determine the loan origination fee for a $300,000 loan with an origination fee of 1.5%, you can simply calculate the fee by multiplying the loan amount by the origination percentage.

In this case, you would take 1.5% of $300,000. The calculation is as follows:

1.5% can be expressed as a decimal: 1.5% = 0.015.

Next, you multiply this decimal by the loan amount:

0.015 × $300,000 = $4,500.

The resulting amount from this calculation represents the loan origination fee, which comes to $4,500. This reflects the lender's charge for processing the loan, typically covering administrative costs and other expenses related to the servicing of the loan.

Thus, the correct answer is $4,500.

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