Question

Fred and wilma buy a home. they plan to make a down payment and carry a $90,000 mortgage. closing costs are $2,500 and are added to the loan amount. what is the new amount being financed?

Answer 1

$90,000 + $2,500 = $92,500

Answer 2

Mortgage rate = $90000

Closing costs added to the loan amount = $2500

Total new amount being financed would be =
`90000+2500=92500`

(the mortgage amount needs to paid along with closing costs, that is why the values are added.)