Question

You get a $170,000 mortgage loan and incur the following loan costs: 1/2% origination fee, 7/8 of a point, $70 credit report fee, $475 appraisal fee, $630 title insurance fee, $400 processing fee, $125 closing fee, and $70 for recording. What are your total loan costs?​

Answer 1

The total loan costs for a $170,000 mortgage, considering all fees summed together, amount to $4,107.50.

Step-by-step explanation:

To calculate the total loan costs for a $170,000 mortgage, we need to consider all the fees associated with getting the loan: the origination fee, the points, and the various other fees such as for the credit report, appraisal, title insurance, processing, closing, and recording.

Origination fee: 1/2% of $170,000 = $850

Points fee: 7/8 of a point = (7/8) * (1% of $170,000)

= $1,487.50

Credit report fee: $70

Appraisal fee: $475

Title insurance fee: $630

Processing fee: $400

Closing fee: $125

Recording fee: $70

Adding all these costs gives us the total loan costs:

$850 + $1,487.50 + $70 + $475 + $630 + $400 + $125 + $70 = $4,107.50.

Therefore, the total loan costs for the $170,000 mortgage would be $4,107.50.