A lender estimates the closing costs on a home loan of $90,000 as listed below.
Closing Cost
...
Mathematics, 12.04.2021 19:10 brookemcelhaney
A lender estimates the closing costs on a home loan of $90,000 as listed below.
Closing Cost
Charge
Loan origination
$180
Title insurance
$365
Attorney’s fees
$795
Inspection
$300
Recording fees
$120
Escrow
$980
The actual closing costs were:
Closing Cost
Charge
Loan origination
$180
Title insurance
$340
Attorney’s fees
$830
Inspection
$375
Recording fees
$150
Escrow
$1,000
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.
Please select the best answer from the choices provided
A
B
C
D
Answers: 3
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