Question

What are the closing costs for a recent home purchase that includes a mortgage of $105,430 at 2.5 points and attorney's fees of $285 and title fees of $250?

Answer 1

Information given;
Mortgage = $105,430
Number of points = 2.5
Attorney's fees = $285
Title fees = 250

Closing cost is the cost on top of the mortgage value that the borrower must also pay.

The cost of the points is calculated as follows:
Cost on points = 1%*mortgage value*points = 0.01*2.5*105,430 = $2,635.75

Therefore,
Closing cost = Cost of points + Other costs = 2635.75+285+250 = $3,170.75