Answer:
Option D is correct.
Explanation:
Closing costs are calculated based on - selling price of the house minus down payment.
Closing costs are those costs that a dealer levies on the buyers. These costs includes the price of the house and other application charges. The dealers commission is also included in this cost. These all costs are added up with the selling price of the house to make a complete closing cost. The commissions are also based on the selling price and it varies with the price of the house. The down payment is subtracted and then the closing cost is calculated.
All other options ate incorrect. Loan amount is not considered in closing cost.