1. **State the problem:** A professor wants to buy a house for 660000 with a conventional loan requiring a 20% down payment and 2 points at closing. We need to find the cost of the 2 points. 2. **Understand the terms:** - Down payment = 20% of the house price. - Points are fees paid to the bank, where 1 point = 1% of the loan amount. - The loan amount = house price minus down payment. 3. **Calculate the down payment:** $$\text{Down payment} = 0.20 \times 660000 = 132000$$ 4. **Calculate the loan amount:** $$\text{Loan amount} = 660000 - 132000 = 528000$$ 5. **Calculate the cost of 2 points:** Since 1 point = 1% of loan amount, $$\text{Cost of 2 points} = 2 \times 0.01 \times 528000 = 0.02 \times 528000 = 10560$$ **Final answer:** The cost of the 2 points is $10560.