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 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

Closing costs typically include title insurance, mortgage insurance, and recording fees, but earnest money is not typically considered a closing cost. Earnest money is a deposit made by the buyer to show their good faith in the purchase and is usually applied towards the down payment or closing costs.

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