You are purchasing a home for $220,000. The down payment is 30% and the balance will be financed with a 20-year mortgage at 9% and 2 discount points. You put down a deposit of $5,000 (applied to the down payment) when the sales contract was signed. You also have these expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $225; and attorney's fees, $600. Find your amount due at the closing.

Question

Quizplus · Accepted Answer

The down payment is 30% of $220,000, which is $66,000. The deposit of $5,000 is applied to this, leaving $61,000 due. The amount financed is $154,000 ($220,000 - $66,000). The discount points are 2% of $154,000, which is $3,080. The title insurance is 1% of $154,000, which is $1,540. Adding the other expenses: $70 (credit report) + $110 (appraisal fee) + $225 (title search) + $600 (attorney's fees) = $1,005. Total due at closing is $61,000 + $3,080 + $1,540 + $1,005 = $66,625.

You Are Purchasing a Home for $220,000