Sales price $295,000, buyer puts on new 80% loan and pays 1% loan fee, $45 tax service fee, $400 tax prorations, $175 structural pest control inspection fee, $20 credit report, $20 recording fees, $910 hazard insurance fee, and a $600 escrow fee. How much will the buyer need to close escrow?

Question

Quizplus · Accepted Answer

To calculate the total amount the buyer would need to close escrow:

1. Calculate the loan amount: 
$295,000 x 80% = $236,000

2. Add the loan fee: 
$236,000 x 1% = $2,360

3. Add all the other fees: 
$45 + $400 + $175 + $20 + $20 + $910 + $600 = $2,170

4. Add the loan amount and all fees: 
$236,000 + $2,360 + $2,170 = $240,530

Therefore, the buyer would need to close escrow with $63,530 (subtracting the sales price from the total amount).

Sales Price $295,000, Buyer Puts on New 80% Loan and Pays