Question

Mr. Jackson purchases a home for $90,000. He paid $4,000 as an earnest money deposit, and is obtaining an 80% loan. Costs include $250 for title insurance, recording fees of $60, and a tax proration fee of $430. Mr. Jackson will need to bring a check to closing in the amount of:

Answer 1

Mr. Jackson will need to bring a check to closing in the amount of $14,470

Step-by-step explanation:

The computation of the closing amount is shown below:

= Down payment + title insurance + recording fees + tax proportion fee - = earned money deposit

where,

Down payment = Purchase cost × remaining percentage (100% - 80%)

= $90,000 × 20%

= $18,000

The other values remain same

So, the value would equal to

= $18,000 + $250 + $60 + $430 - $4,000

= $14,470