Question

Larry and Laurie have found a home and made a $125,000 offer that has been accepted. They make a down payment of 10%. Their bank charges a loan origination fee of 1% of the loan and points of 1.5% (both are based on the loan amount). Other fees include a $25 loan appli- cation fee, a $250 appraisal fee, and $350 for title search and insurance. How much cash will Larry and Laurie need at closing?

Answer 1

Step-by-step explanation:

downpayment of 10% of 125,000 = 12,500

origination fee of 1% of 125,000 = 1,250

points 1.5% of 125,000 = 1,875

application fee = 25

appraisal fee = 250

title search and insurance = 350

TOTAL AMOUNT OF CASH REQUIRED = 16,250