## Related questions with answers

Use the closing costs to calculate the (a) total closing costs and (b) total amount of the mortgage if the closing costs are financed. Jack and Dina King purchase a home with a mortgage loan of $420,000.$

$\begin{array}{c}\\ \text{Closing Cost}\\ \begin{array}{|l|c|} \hline \text { Application Fee } & \$ 252 \\ \hline \text { Borrower's Credit Check } & 65 \\ \hline \text { Points } & 2.00 \% \text { of Mortgage } \\ \hline \text { Appraisal Fee } & \$ 325 \\ \hline \text { Title Search } & 212 \\ \hline \text { Title Insurance } & 410 \\ \hline \text { Inspection } & 350 \\ \hline \text { Attorney Fee } & 450 \\ \hline \text { Documentation Stamp } & 0.30 \% \text { of Mortgage } \\ \hline \text { Processing Fee } & 1.10 \% \text { of Mortgage } \\ \hline \end{array} \end{array}$

$

Solution

Verified(a) $\$ 252+\$ 65+2.00\% \times \$ 420,000+\$ 325 + \$ 212 + \$ 410 + \$ 350 + \$ 450 + 0.30\% \times \$ 420,000 + \$ 1.10\% \times \$ 420,000= \$ 16,344$

The total closing costs is the sum of the various closing fees.

## Create a free account to view solutions

## Create a free account to view solutions

## Recommended textbook solutions

#### Mathematics for Business and Personal Finance

1st Edition•ISBN: 9780021400966Lange, Rousos#### Mathematics for Business and Personal Finance

1st Edition•ISBN: 9780078805059 (1 more)Lange, Rousos#### Principles of Corporate Finance

13th Edition•ISBN: 9781260013900Franklin Allen, Richard A. Brealey, Stewart Myers## More related questions

1/4

1/7