yaneliezarate02
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Jose decided on purchasing a $145,000 home. At closing he brought a check for $4645. The closing costs were as follows:
Title Fee | $545
Processing Fee | $1975
Appraisal | $675

Based on this information how many points did Jose purchase?
A. 0 B. 2 C. 3 D. 1

Respuesta :

sqdancefan

Answer:

  D.  1

Step-by-step explanation:

The total of the listed costs is ...

  $545 +1975 +675 = $3195

The difference between this amount and the amount of Jose's check is presumed to be for the purchase of points. That difference is ...

  $4645 -3195 = $1450

As a percentage of the purchase price, that is ...

  $1450/$145,000 × 100% = 1%

A "point" is 1% of the loan amount, so the $1450 excess over the listed costs appears to be for the purchase of 1 point.

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