Refer to the following list of closing costs for purchase of a $ 175,000 house requiring a 20% down payment and find each requested amount.

Title insurance premium $ 240
Document recording fee 30
Loan fee ( two points) …..
Appraisal fee 225
Prorated property taxes 685
Prorated fire insurance premium 295

a) the mortgage amount
b )the loan fee
c)the total closing costs
d) the total amount of cash required of the buyer at closing ( including down payment)

To find the requested amounts, we can apply the following calculations:

a) The mortgage amount is the total cost of the house minus the down payment. Since the house costs $175,000 and requires a 20% down payment, we can calculate the mortgage amount as follows:

Mortgage amount = Total cost of the house - Down payment
Mortgage amount = $175,000 - (20% of $175,000)

To find 20% of $175,000, use the formula (20 / 100) x $175,000. This will give you $35,000. Subtracting this from the total cost:

Mortgage amount = $175,000 - $35,000
Mortgage amount = $140,000

Therefore, the mortgage amount is $140,000.

b) The loan fee is stated as "two points." Points are percentages of the loan amount. To find the loan fee, we need to know the loan amount.

Loan fee = Two points x Mortgage amount
Loan fee = 2% x $140,000

To find 2% of $140,000, multiply $140,000 by 2/100 or 0.02:

Loan fee = $140,000 x 0.02
Loan fee = $2,800

Therefore, the loan fee is $2,800.

c) The total closing costs are the sum of all the individual closing costs mentioned.

Total closing costs = Title insurance premium + Document recording fee + Loan fee + Appraisal fee + Prorated property taxes + Prorated fire insurance premium
Total closing costs = $240 + $30 + $2,800 + $225 + $685 + $295

Add the individual closing costs to get the total:

Total closing costs = $240 + $30 + $2,800 + $225 + $685 + $295
Total closing costs = $4,275

Therefore, the total closing costs are $4,275.

d) The total amount of cash required from the buyer at closing includes the down payment and the total closing costs.

Total amount of cash required = Down payment + Total closing costs
Total amount of cash required = 20% of the total cost of the house + Total closing costs

Plugging in the values:

Total amount of cash required = (20/100) x $175,000 + $4,275

To find 20% of $175,000, multiply $175,000 by 20/100 or 0.20:

Total amount of cash required = $175,000 x 0.20 + $4,275
Total amount of cash required = $35,000 + $4,275
Total amount of cash required = $39,275

Therefore, the total amount of cash required from the buyer at closing, including the down payment, is $39,275.