A lender estimates the closing costs on a home loan will be 3% of the loan amount of $180,000. The actual closing costs are listed below. Closing Cost Charge Loan origination $345 Title insurance $600 Attorney's fees $1,350 Appraisal $480 Inspection $550 Recording fees $175 Escrow $1,900 Evaluate the lender's good faith estimate.
Which of the following statements is true?
Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month?
The following closing costs were paid on a home loan.Closing CostChargeLoan origination$320Title insurance$473Attorney’s fees$915Appraisal$415Recording fees$103Escrow$1,318If the closing costs were 5% of the loan amount, how much was the loan amount?
If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%?
Why are closing costs a one time fee?
Which term is defined as a fee charged for the use of money?
Which of these statements is most accurate regarding mortgage payments through the life of your loan?
If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%?
In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount.Closing CostChargeLoan origination$280Title insurance$476Attorney’s fees$675Inspection$200Recording fees$118Escrow$573If the loan amount is $165,000, how much was paid at closing?
Housing expenses are commonly referred to as PITI. What does PITI stand for?
Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa’s monthly payments are $1,595.85. How much was Vanessa’s down payment?
Which of the following statements is true.I. The higher your interest rate, the higher your monthly mortgage payments.II. The higher your down payment, the higher your monthly mortgage payments.III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%.
When buying a home, the lender may hold money in an escrow account to pay _____.
Yolanda closed on a 20 year home loan for $83,000. She chooses to buy only 1 point at closing. By buying a point at her closing, Yolanda reduced her monthly payment by $7.63. Based on the fact that Yolanda chose to buy a point at closing, what would you infer is the minimum amount of time that she will own the home?
What may be a concern if you have an adjustable rate mortgage (ARM)?
In which of the following cases would you most likely buy a point when closing on a home loan?
Eli is buying a townhouse that costs $276,650. He has $28,000 in savings and earns $4,475 a month. Eli would like to spend no more than 30% of his income on his mortgage payment. Which loan option would you recommend to Eli?
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