You are purchasing a home for $340,000. The down payment is 25% and the balance will be financed with a 25-year mortgage at 8% and 1 discount points. You put down a deposit of $10,000 (applied to the down payment) when the sales contract was signed. You also have these expenses: credit report, $80; appraisal fee, $140; title insurance premium, 1% of amount financed; title search, $300; and attorney's fees, $850. Find your amount due at the closing.

Question

Quizplus · Accepted Answer

The down payment is 25% of $340,000, which is $85,000. You already paid $10,000, so you owe $75,000. The amount financed is $255,000, and 1% discount points are $2,550. Title insurance is 1% of $255,000, which is $2,550. Add other expenses: $80 (credit report), $140 (appraisal), $300 (title search), and $850 (attorney). Total due at closing: $75,000 + $2,550 + $2,550 + $80 + $140 + $300 + $850 = $81,470.

You Are Purchasing a Home for $340,000