Question

Jose decided on purchasing a $145,000 home. At closing he brought a check for $4645. The closing costs were as follows:

Answer 1

Answer:

  D.  1

Step-by-step explanation:

The total of the listed costs is ...

  $545 +1975 +675 = $3195

The difference between this amount and the amount of Jose's check is presumed to be for the purchase of points. That difference is ...

  $4645 -3195 = $1450

As a percentage of the purchase price, that is ...

  $1450/$145,000 × 100% = 1%

A "point" is 1% of the loan amount, so the $1450 excess over the listed costs appears to be for the purchase of 1 point.