From the borrower's perspective, the effective borrowing cost is often viewed as the implied internal rate of return (IRR), since it takes into consideration costs that the borrower faces, but which are not passed on as income to the lender. Included in this calculation are certain closing costs, which may consist of all of the following EXCEPT:
A) Title insurance
B) Mortgage insurance
C) Recording fees
D) Earnest money

Question

Quizplus · Accepted Answer

Earnest money is typically paid by the borrower as a deposit to show their commitment and is not considered a closing cost. Title insurance, mortgage insurance, and recording fees are all examples of typical closing costs.

From the Borrower's Perspective, the Effective Borrowing Cost Is Often