Maya is buying a house for \( \$ 130,000 \). She plans to make a \( 18 \% \) down payment. Closing costs include \( \$ 550 \) for 6 months of homeowners insurance, \( \$ 850 \) for 6 months of property tax, \( \$ 125 \) for the title fee, and \( \$ 400 \) in transaction fees. Maya also agreed to pay two points in exchange for a \( 0.5 \% \) reduction in interest rate. Determine the amount of money Maya will be expected to pay at closing. Round your answer to the nearest cent. Answer

First, we need to determine Maya's down payment. The down payment is \( 18\% \) of the house price: \[ \text{Down Payment} = 0.18 \times 130,000 = 23,400 \] Next, let's calculate the total closing costs: \[ \text{Closing Costs} = 550 \text{ (insurance)} + 850 \text{ (property tax)} + 125 \text{ (title fee)} + 400 \text{ (transaction fees)} = 1,925 \] Now, we will sum the down payment and the closing costs: \[ \text{Total Due at Closing} = \text{Down Payment} + \text{Closing Costs} = 23,400 + 1,925 = 25,325 \] Maya also agreed to pay two points. One point is equal to \( 1\% \) of the loan amount (which is the house price minus the down payment): \[ \text{Loan Amount} = 130,000 - 23,400 = 106,600 \] \[ \text{Points Cost} = 2\% \times 106,600 = 0.02 \times 106,600 = 2,132 \] Finally, we add the points cost to the total due at closing: \[ \text{Total Amount Due at Closing} = 25,325 + 2,132 = 27,457 \] Therefore, the amount Maya will be expected to pay at closing is: \[ \boxed{27,457.00} \]