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.

1. **Compute the Down Payment** The home is listed at \( \$120,\!000 \) and the required down payment is \( 30\% \) of the purchase price: \[ \text{Down Payment} = 0.30 \times 120,\!000 = \$36,\!000. \] 2. **Determine the Remaining Down Payment Owed at Closing** A deposit of \( \$15,\!000 \) has already been paid toward the down payment. The remaining down payment to be paid at closing is: \[ \text{Remaining Down Payment} = 36,\!000 - 15,\!000 = \$21,\!000. \] 3. **Calculate the Amount Financed** The mortgage will finance the balance of the home price after the down payment: \[ \text{Amount Financed} = 120,\!000 - 36,\!000 = \$84,\!000. \] 4. **Compute the Cost of Discount Points** There are 3 discount points, where each point costs \( 1\% \) of the financed amount. Thus, the cost is: \[ \text{Discount Points Cost} = 0.03 \times 84,\!000 = \$2,\!520. \] 5. **Itemize the Other Closing Expenses** The additional expenses are listed as follows: - Credit report: \( \$80 \) - Appraisal fee: \( \$100 \) - Title insurance premium: \( 1\% \) of \( \$84,\!000 \) \[ \text{Title Insurance} = 0.01 \times 84,\!000 = \$840. \] - Title search: \( \$175 \) - Attorneys fees: \( \$600 \) Summing these expenses: \[ \text{Other Expenses} = 80 + 100 + 840 + 175 + 600 = \$1,\!795. \] 6. **Compute the Total Amount Due at Closing** The total amount due at closing is the sum of the remaining down payment, the cost of the discount points, and the other closing expenses: \[ \text{Total Due} = 21,\!000 + 2,\!520 + 1,\!795 = \$25,\!315. \] Thus, the amount you need to pay at closing is \( \$25,\!315 \).