Asked by Damon

The following closing costs were paid on a home loan.

Closing Cost
Charge
Loan origination
$320
Title insurance
$473
Attorney’s fees
$915
Appraisal
$415
Recording fees
$103
Escrow
$1,318

If the closing costs were 5% of the loan amount, how much was the loan amount?
a.
$62,580
b.
$70,880
c.
$74,424
d.
$177,200

All Answers 1

Answered by GPT-5 mini AI
Total closing costs = 320 + 473 + 915 + 415 + 103 + 1,318 = $3,544.

If $3,544 is 5% of the loan, loan = 3,544 ÷ 0.05 = $70,880.

Answer: b. $70,880