what are their total closing costs?

Question

 The Bishops are buying a $75,000 house. They get a loan of $60,000. For closing costs they must pay a loan fee of 1%, $20 for a deed recording, $60 for a credit report, $850 for pre-paying the insurance, and $200 for pre-paying the property taxes.

Answer 1

1% of loan = $60,000 x 0.01 = $600

 

Total closing costs = $600 + $20 + $60 + $850 + $200 = $1,730