Question

The Albertsons are purchasing a home for $400,000. They are financing 70 percent of the home’s value. In addition to the down payment, they have the following closing costs:

Lender’s inspection fee $400

Loan origination fee 1.5% of the loan amount

Notary public fee $60
Document recording fees $75
Title search $300

What is the total amount of the closing costs?

Answer 1

$5,035

Explanation:

First, you have $400 as the first cost in the closing costs.

You Then find 1.5% of the loan amount, which is 70% of $400,000 ($280,000), so 1.5% of $280,000 is $4,200. So you add $4,200 to the $400

Next, you add the notary fee of $60.

Then you add the recording fees of $75.

Lastly, you add the title search of $300.

Now add everything up, $400 + $4,200 + $60 + $75 + $300 = $5,035

Final answer = $5,035