Question

If you are the buyer and your closing costs are 4% of the loan amount, how much will you pay if the loan amount is $200,000?

Answer 1

Answer:

$8,000

Explanation:

Closing costs are fees levied on mortgage takers. They are paid at the closing stages of a mortgage to cover the costs of transferring the title to the buyer and other expenses.

If the mortgage is $200,000 and closing costs at 4%, the actual amount to be paid as the closing cost will be,

= 4% of $200,000

=4/100 x $200,000

=0/04 x $200,000

=$8,000