You are interested in purchasing a home listed at \( \$ 120,000 \). The down payment is \( 30 \% \) and the balance will be financed with a 20 -year mortgage at \( 9 \% \) and 3 discount points. You put down a deposit (applied to the down payment) of \( \$ 15,000 \) when you signed the sales contract. You also have these expenses: credit report, \( \$ 80 \), appraisal fee, \( \$ 100 \); title insurance premium, \( 1 \% \) of amount financed; title search, \( \$ 175 \); and attorneys fees, \( \$ 600 \). Find your amount due at the closing. Select one: a. \( \$ 22,795.00 \) b. \( \$ 24,475.00 \) c. \( \$ 25,315.00 \) d. \( \$ 10,315.00 \)

To find the amount due at closing, we'll first calculate the different components involved: 1. **Down Payment**: The down payment is 30% of the home price: \[ 0.30 \times 120,000 = 36,000 \] You've already paid a deposit of $15,000, so your remaining down payment due is: \[ 36,000 - 15,000 = 21,000 \] 2. **Loan Amount**: Subtracting the down payment from the home price gives: \[ 120,000 - 36,000 = 84,000 \] 3. **Title Insurance**: This is 1% of the amount financed (which is $84,000): \[ 0.01 \times 84,000 = 840 \] 4. **Total Closing Costs**: Now, add all the expenses together: - Remaining down payment: $21,000 - Credit report: $80 - Appraisal fee: $100 - Title insurance: $840 - Title search: $175 - Attorney's fees: $600 Adding these up: \[ 21,000 + 80 + 100 + 840 + 175 + 600 = 22,795 \] The amount due at closing is \( \$ 22,795.00 \). So, the correct answer is: **a. \( \$ 22,795.00 \)**. Now that you've got the figures down, let’s dive into some interesting additional insights! When it comes to the history of home financing, the 30-year mortgage was first introduced during the Great Depression to make homeownership more accessible. It was a game changer, allowing people to spread their payments over a longer period with a lower monthly burden. If you're ever caught in a stressful closing process, remember to double-check every fee and payment listed in your closing statement! Common mistakes include overlooking small fees that can add up or miscalculating the down payment applied. A little extra diligence can save you from unexpected surprises when you go to seal the deal on your dream home!