Isabel is buying a house for $170,000. She plans to make a 10% down payment. Closing costs include $900 for 6 months of homeowners insurance, $1050 for 6 months of property tax, $150 for the title fee, and $400 in transaction fees. Isabel also agreed to pay three points in exchange for a 0.75 % reduction in interest rate. Determine the amount of money Isabel needs to cover closing costs. Round your answer to the nearest cent.

Isabel is buying a house for $170,000. She plans to make a 10% down payment. Closing costs include $900 for 6 months of homeowners insurance, $1050 for 6 months of property tax, $150 for the title fee, and $400 in transaction fees. Isabel also agreed to pay three points in exchange for a 0.75 % reduction in interest rate. Determine the amount of money Isabel needs to cover closing costs. Round your answer to the nearest cent.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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