Mathematics, 15.12.2020 06:10 CameronVand21
A lender estimates the closing costs on a home loan will be 3% of the loan amount of $180,000. The actual closing costs are listed below.
Closing Cost
Charge
Loan origination
$345
Title insurance
$600
Attorney's fees
$1,350
Appraisal
$480
Inspection
$550
Recording fees
$175
Escrow
$1,900
Evaluate the lender's good faith estimate.
a.
The lender made an excellent estimate; it was equal to the actual closing costs.
b.
The lender made a very good estimate; it was within 0.25% of the actual closing costs.
c.
The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs.
d.
The lender made a poor estimate; it was higher than 0.5% of the actual closing costs.
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