Question

Fred Landers and his brother are interested in purchasing a house priced at $310,000. They plan to put 30% down and finance the remaining amount through Anderson Savings. Anderson Savings has the following closing costs: credit report, $100; appraisal report, $250; title insurance, $190; survey and photographs, $275; recording fees, $70; and legal fees, $280. If the loan is approved, how much cash must Fred and his brother have to secure the loan, including the down payment?

A: $95,389
B: $97,238
C: $92,259
D: $94,165

Answer 1

The correct answer is D: $94,165.

First, let's find the amount of the down payment. It is 30% of the total.
310,000 x 0.30 = 93,000

Now, we just need to add on all the additional costs.

93000 + 100 + 250 +190 + 275 +70 + 280 = 94165