Question
You are interested in purchasing a home listed at
3 discount points. You put down a deposit (applied to the down payment) of
credit report,
at the closing.
3 discount points. You put down a deposit (applied to the down payment) of
credit report,
at the closing.
Ask by Ryan Bob. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The total amount due at closing is $25,315.
Solution
-
Compute the Down Payment
The home is listed atand the required down payment is of the purchase price: -
Determine the Remaining Down Payment Owed at Closing
A deposit ofhas already been paid toward the down payment. The remaining down payment to be paid at closing is: -
Calculate the Amount Financed
The mortgage will finance the balance of the home price after the down payment: -
Compute the Cost of Discount Points
There are 3 discount points, where each point costsof the financed amount. Thus, the cost is: -
Itemize the Other Closing Expenses
The additional expenses are listed as follows:- Credit report:
- Appraisal fee:
- Title insurance premium:
of - Title search:
- Attorneys fees:
Summing these expenses: - Credit report:
-
Compute the Total Amount Due at Closing
The total amount due at closing is the sum of the remaining down payment, the cost of the discount points, and the other closing expenses:
Thus, the amount you need to pay at closing is
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Bonus Knowledge
First, let’s break it down! The total cost of the home is
Now, let’s add up all your closing costs:
