Question

Deborah is buying a $240,000 home. she has decided to purchase 2 points in order to lower her interest rate. the appraisal fee is $550, the processing fee is $475, and the title fee is $600. what are her total closing costs?

Answer 1

$2,175

Step-by-step explanation

Note that the total closing cost does not include the cost of the house.

If she decided to purchase 2points to lower her interest rate, her total appraisal fee will be 2 times the appraisal fee per point i.e 2× $550 = $1100

Given the processing fee = $475

Title fee = $600

Total closing cost = $1100 + $475 + $600

Total closing cost = $2,175