Question

closing costs: larry and laurie have founda home and made $118,100 offer that has been accepted. They make a down payment of 15%. Their bank charges a loan origination fee of 1.0% of the loam and points 1.4%. Other fees include $50 loan application fee, a $300 appraisal fee and $410 for title search and insurance. How much cash will larry and laurie need at closing

Answer 1

Solution:
	Cash larry and laurie needed at closing	20,884.24
Working Notes:
	Cash larry and laurie needed at closing
	Means they need to pay at the close of deal
	Cash needed at closing = down payment + Points Fee + Origination Fee + loan application fee + appraisal fee + title search and insurance
Now	Calculating each items
	Down payment
	=offer amount x down payment %
	=$118,100 x 15%
	=$17,715
Notes:	Mortgage amount = Offer amount -down payment
	Mortgage amount = 118,100 -17,715
	Mortgage amount = 100,385
	Points Fee
	= Mortgage amount x Points %
	= 100,385 x 1.4%
	= 1,405.39
	Origination fee
	= Mortgage amount x Origination %
	= 100,385 x 1%
	= 1,003.85
	Cash needed at closing = down payment + Points Fee + Origination Fee + loan application fee + appraisal fee + title search and insurance
	Cash needed at closing
	=17,715 + 1,405.39 + 1,003.85 + 50 + 300 +410
	=20,884.24
Please feel free to ask if anything about above solution in comment section of the question.