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Viktor [21]
3 years ago
5

Erica is buying a $205,000 home. She has decided to purchase 2 points in order to lower her interest rate. The appraisal fee is

$450, the processing fee is $575, and the title fee is $600. What is her total in closing costs?
Mathematics
2 answers:
victus00 [196]3 years ago
8 0
2 points=2%=0.02
205000×0.02=4,100 cost of 2 points

Closing costs is
4,100+450+575+600
=5,725....answer

Hope it helps!
amm18123 years ago
4 0

Answer: $5,725

Step-by-step explanation:

Given: The cost of home = $205,000

If there is no down payment, then the mortgage amount = $205,000

We know that one point costs 1 % of mortgage amount .

2 points = 2 % of the mortgage amount =0.02\times205,000=\$4,100

\text{Closing costs=}\text{cost of points + appraisal fee+processing fee+ title fee}

=\$4,100+\$450+\$575+\$600=\$5,725

Hence, her total in closing costs = $5,725.

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