Question

Closing costs are calculated based on _____.

Answer 1

Answer:

Selling price of the house.

Step-by-step explanation:

I don't know too much about housing, so here are my sources.

"Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing fees, according to a recent survey."

Quote from: https://www.zillow.com/mortgage-learning/closing-costs/

https://www.bankofamerica.com/mortgage/closing-costs-calculator/

Hopefully this helps.

Answer 2

Answer:

Option D is correct.

Step-by-step explanation:

Closing costs are calculated based on - selling price of the house minus down payment.

Closing costs are those costs that a dealer levies on the buyers. These costs includes the price of the house and other application charges. The dealers commission is also included in this cost. These all costs are added up with the selling price of the house to make a complete closing cost. The commissions are also based on the selling price and it varies with the price of the house. The down payment is subtracted and then the closing cost is calculated.

All other options ate incorrect. Loan amount is not considered in closing cost.