Other Costs of Buying a Home Answers

To close on a home purchase you only need to pay the down payment and realtor fees.

Mr. and Mrs. Chavez close on a 30 year home loan for $250,000. The monthly payment with no points is $1,580, but if they buy a point it is $1,560. What might you infer if Mr. and Mrs. Chavez choose not to buy a point?a.They plan to sell the house at the end of 5 years.b.They plan to sell the house at the end of 10 years.c.They plan to sell the house at the end of 15 years.d.They plan to stay in the house at least 30 years.

A lender estimates that the closing costs on a $312,500 home loan will be $12,500. The actual closing costs were 4.25% of the loan amount. Determine if the closing costs were higher or lower than the estimate and by what percent.a.higher by 0.125%b.higher by 0.25%c.lower by 0.125%d.lower by 0.25%

Without buying points, a monthly mortgage payment will be $1,250. Buying 1 point at closing would reduce the payment to $1,236. To the nearest year, how long would it take to break even by buying 1 point, with a $100,000 mortgage? a. 5 years b. 6 years c. 7 years d. 8 years Please select the best answer from the choices provided

Describe what a loan discount point is and what effect it has on a home loan.

A lender estimates the closing costs on a home loan will be 3.75% of the loan amount of $120,000. The actual closing costs are listed below. Closing Cost Charge Loan origination $300 Title insurance $600 Attorney’s fees $1,250 Appraisal $550 Inspection $525 Recording fees $125 Escrow $2,000 Evaluate the lender’s good faith estimate. a. The lender made an excellent estimate; it was equal to the actual closing costs. b. The lender made a very good estimate; it was within 0.25% of the actual closing costs. c. The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs. d. The lender made a poor estimate; it was off by more than 0.5% of the actual closing costs. Please select the best answer from the choices provided

Money held by the lender to pay homeowners insurance and property taxes is put in a fund called _____.a.closing costsb.commissionc.escrowd.origination

A lender estimates the closing costs on a home loan of $90,000 as listed below. Closing Cost Charge Loan origination $180 Title insurance $365 Attorney’s fees $795 Inspection $300 Recording fees $120 Escrow $980 The actual closing costs were: Closing Cost Charge Loan origination $180 Title insurance $340 Attorney’s fees $830 Inspection $375 Recording fees $150 Escrow $1,000 Evaluate the lender's good faith estimate as a percentage of the loan amount. a. The lender made a very good estimate; it was within 0.25% of the actual closing costs. b. The lender made a fairly good estimate; it was between 0.25% and 0.5% from the actual closing costs. c. The lender made a somewhat poor estimate; it was between 0.25% and 0.5% from the actual closing costs. d. The lender made a very poor estimate; it was between 0.5% and 0.75% from the actual closing costs. Please select the best answer from the choices provided

Which of the following refers to the cost associated with getting a statement of the property value when buying a home?a.appraisalb.discountc.inspectiond.origination

The list below shows the closing costs on a home loan amount of $185,000. Closing Cost Charge Loan origination $275 Title insurance $528 Attorney's fees $750 Appraisal $275 Recording fees $121 If the buyer also paid a 3% real estate agent commission, what was the total amount paid at closing? a. $2,499 b. $5,550 c. $6,499 d. $7,499 Please select the best answer from the choices provided