A lender estimates the closing costs on a home loan of $50,000 as listed below. Closing Cost Charge Loan origination $200 Title insurance $530 Attorney’s fees $600 Appraisal $265 Inspection $575 Recording fees $130 Escrow $800 If the lender’s good faith estimates are accurate, are they a reasonable amount for closing costs? Why or why not? a. Yes, because the lender esitmated 3.08% of the home loan in closing costs which falls between 3 – 5%. b. Yes, because the lender estimated 4.6% of the home loan in closing costs which does not fall between 3 – 5%. c. No, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 – 5%. d. No, because the lender estimated 17.7% of the home loan in closing costs which does fall between 3 – 5%.

THIS USER ASKED 👇

A lender estimates the closing costs on a home loan of $50,000 as listed below. Closing Cost Charge Loan origination $200 Title insurance $530 Attorney’s fees $600 Appraisal $265 Inspection $575 Recording fees $130 Escrow $800 If the lender’s good faith estimates are accurate, are they a reasonable amount for closing costs? Why or why not?

a. Yes, because the lender esitmated 3.08% of the home loan in closing costs which falls between 3 – 5%. b. Yes, because the lender estimated 4.6% of the home loan in closing costs which does not fall between 3 – 5%. c. No, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 – 5%. d. No, because the lender estimated 17.7% of the home loan in closing costs which does fall between 3 – 5%.

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The choices are necessary.