Answer:
Richie Rich
The total amount that Richie needs to bring to closing the transaction is
= $43,550.
Explanation:
a) Data and Calculations:
Cost of home purchase contract = $400,000
90% loan to be given Richie = $360,000 ($400,000 * 90%)
Therefore, 10% will be provided by Richie = $40,000 ($400,000 * 10%)
Earnest money down payment = $5,000
Balance required from Richie = $35,000 +
Additional 1% of $360,000 for origination fee = $3,600 ($360,000 * 1%)
Additional 1 of $360,000 for discount = $3,600 ($360,000 * 1%)
Title charge = $1,350
Total amount that Richie needs to bring to closing the transaction = $43,550 ($35,000 + $3,600 + $3,600 + $1,350).
