Question

addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount.

Closing Cost
Charge
Loan origination
$280
Title insurance
$476
Attorney’s fees
$675
Inspection
$200
Recording fees
$118
Escrow
$573

If the loan amount is $165,000, how much was paid at closing?
a.
$2,322
b.
$2,899
c.
$5,775
d.
$8,097

Answer 1

First add the listed closing costs:
280 + 476 + 675 + 200 + 118 + 573 = $2,322

Realtor commission = 3.5% of $165,000 = 0.035 × 165,000 = $5,775

Total paid at closing = 2,322 + 5,775 = $8,097

Answer: d. $8,097