A builder is offering buyers mortgage rates of 10% with 15 year term

Question: 25. A builder is offering buyers mortgage rates of…

A builder is offering buyers mortgage rates of 10% with 15 year term. Current rates are 10.75%. The Bank will provide the loans, if the builder accepts to pays an equivalent amount up front to buy down the interest rate. If a house is sold for $300,000 with a 90% loan, how much would the builder have to pay to buy down the loan?