116
QuizMultiple Choice

Topic Test

Question 116 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Why are closing costs a one time fee?

Answer
A
Payment of closing costs is required because it is a sign to the lending institution that the investor has every intention of making payments on time.
B
If closing costs were paid over time, they would most likely be forgotten and never paid off.
C
Most home buyers pay for their houses in full, and consequently pay for the closing costs in full as well.
D
The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.

Explanation

Closing costs are generally paid once because they cover expenses tied to completing the home purchase, such as title services, taxes, and real estate fees. Those transaction services are not charged again each month, unlike mortgage payments. Choice D best describes this, although homeowners may still have ongoing expenses such as property taxes and insurance.

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