Mathematics: Erica is buying a $205,000 home. she has decided to purchase 2 points in order to lower her interest rate. the appraisal fee is $450, the processing fee is $575, and the title fee is $600. what is her total in closing costs?

Erica is buying a $205,000 home. she has decided

SophomoreSareke

11.03.2022

$5,725

Step-by-step explanation:

Given: The cost of home = $205,000

If there is no down payment, then the mortgage amount = $205,000

We know that one point costs 1 % of mortgage amount .

2 points = 2 % of the mortgage amount = $0.02\times205,000=\$4,100$

$\text{Closing costs=}\text{cost of points + appraisal fee+processing fee+ title fee}$

$=\$4,100+\$450+\$575+\$600=\$5,725$

Hence, her total in closing costs = $5,725.

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aydenmasonc

05.03.2022

Add all three sides if they are given. If it is a right angled triangle you can also use Pythagoras’ theorem or trigonometry

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