A lender estimates the closing costs on a home loan of $90,000 as listed below.
Evaluate the l...
Mathematics, 28.03.2020 06:07 kledi72
A lender estimates the closing costs on a home loan of $90,000 as listed below.
Evaluate the lender's good faith estimate as a percentage of the loan amount.
a.
The lender made a very good estimate; it was within 0.25% of the actual closing costs.
b.
The lender made a fairly good estimate; it was between 0.25% and 0.5% from the actual closing costs.
c.
The lender made a somewhat poor estimate; it was between 0.25% and 0.5% from the actual closing costs.
d.
The lender made a very poor estimate; it was between 0.5% and 0.75% from the actual closing costs.
The answer is A. The lender made a very good estimate; it was within 0.25% of the actual closing costs.
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