Lucky Louie qualified for a $250,000 mortgage for his new home. The loan application was $400, closing attorney fee $500, appraisal fee $400, title insurance $1200, document fee $75, credit check $50. The loan requires a 1% origination fee plus 1 point (1 %) interest to buy down the rate. How much are Louie's total closing costs?

Question

Quizplus · Accepted Answer

Louie's total closing costs include the origination fee (1% of $250,000 = $2,500), 1 point interest (1% of $250,000 = $2,500), and additional fees ($400 + $500 + $400 + $1200 + $75 + $50 = $2,625). Adding these amounts gives $2,500 + $2,500 + $2,625 = $7,625.

Lucky Louie Qualified for a $250,000 Mortgage for His New