Question

Deborah is buying a $240,000 home. she has decided to purchase 2 points in order to lower her interest rate. the appraisal fee is $550, the processing fee is $475, and the title fee is $600. what are her total closing costs?

Answer 1

The total closing cost that Deborah spent for the transaction which was buying the house does not include the cost of the house first because it is to be staggeringly. The total cost includes the appraisal fee, processing fee, and the title fee. If we add them all in all, we get the total closing fee which is equal to $1625.  

Answer 2

Answer:

$2,175

Explanation

Note that the total closing cost does not include the cost of the house.

If she decided to purchase 2points to lower her interest rate, her total appraisal fee will be 2 times the appraisal fee per point i.e 2× $550 = $1100

Given the processing fee = $475

Title fee = $600

Total closing cost = $1100 + $475 + $600

Total closing cost = $2,175