Final answer:
Aziza's total closing costs for purchasing a $125,000 home with 2 points and various other fees would be $4,125. The provided answer options in the question are incorrect and the same; they do not match our calculated total.
Step-by-step explanation:
Aziza is purchasing a home and is incurring various closing costs, including the price of purchasing points to lower her interest rate. Each point typically costs 1% of the loan amount, so 2 points on a $125,000 home would cost 2% of $125,000, which is $2,500. Additionally, she has to pay other fees such as an appraisal fee of $450, a processing fee of $575, and a title fee of $600. To calculate her total closing costs, we need to add all of these fees together.
The total closing costs would be calculated as follows:
- Points cost: $125,000 x (2/100) = $2,500
- Appraisal fee: $450
- Processing fee: $575
- Title fee: $600
- Total closing costs = Points cost + Appraisal fee + Processing fee + Title fee
- Total closing costs = $2,500 + $450 + $575 + $600
- Total closing costs = $4,125
Therefore, Aziza's total in closing costs would be $4,125. However, there seems to be a typo in the question as all four answer options are the same ($1,625), which is not correct based on our calculation. Aziza should review her loan documents and closing disclosure to ensure she understands all the fees associated.