8
QuizMultiple Choice

Other Costs of Buying a Home

Question 8 • Financial Math A

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

Answer
A
A
B
B
C
C
D
D
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