Question

Lucky Louie qualified for a $250,000 mortgage for his new home. The loan application was $400, closing attorney fee $500, appraisal fee $400, title insurance $1200, document fee $75, credit check $50. The loan requires a 1% origination fee plus 1 point ( 1 %) interest to buy down the rate. How much are Louie's total closing costs?

Answer 1

Louie's total cost is $ 7,625.

Step-by-step explanation:

Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. In the above question all cost mentioned in question meet defination of closing cost.\

For more info please refer to below given calculation.

Loan application = $ 400

Attorney fee = $ 500

Appraisal fee = $ 400

Title insurance = $ 1200

Doc Fee = $ 75

Credit fee = $ 50

Fee and interest = (250000*0.02)= $ 5000

Adding all above we get $ 7,625.