Question

Eugene decided on purchasing a $175,000 home. At closing he brought a check for $6,840. The closing costs were as follows:

Title Fee: $545
Processing Fee $2100
Appraisal: $695
How many points did Eugene purchase? Please explain your answer

Answer 1

Its two hope i helped

Answer 2

Cost of the house = 175,000 dollars.

He came with a check of 6,840 dollars at closing. Given are the costs of purchasing a house as follows :-

Title Fee = 545 dollars

Processing Fee = 2100 dollars

Appraisal = 695 dollars

Total Cost = Title Fee + Processing Fee + Appraisal.

Total Cost = 545 + 2100 + 695 = 3340 dollars.

Check amount = 6840 dollars.

Balance amount = Check amount - Total costs = 6840 - 3340 = 3500 dollars.

Eugene purchased points =
`(3,500)/(175,000) *100=2\%`

So, he purchased 2 points on basis of 100.