Calculate how much money a prospective homeowner would need for closing costs on a house that costs ​$143 comma 200. Calculate based on a 12 percent down​ payment, 2.5 discount points on the​ loan, a 1.4 point origination​ fee, and ​$1 comma 350 in other fees.

To calculate the total closing costs for the homeowner, we need to break down the different components. Here's how we can calculate each step:

### 1. **Down Payment:**
A 12% down payment on the house price of \$143,200 is:

\[
\text{Down Payment} = 0.12 \times 143,200 = 17,184
\]

### 2. **Loan Amount:**
After the down payment, the remaining loan amount would be:

\[
\text{Loan Amount} = 143,200 - 17,184 = 126,016
\]

### 3. **Discount Points:**
Discount points are fees paid to the lender to reduce the interest rate on the mortgage. If 2.5 discount points are applied, they are calculated as 2.5% of the loan amount:

\[
\text{Discount Points} = 0.025 \times 126,016 = 3,150.40
\]

### 4. **Origination Fee:**
The origination fee is typically a percentage of the loan amount. Here, it's 1.4 points, or 1.4% of the loan:

\[
\text{Origination Fee} = 0.014 \times 126,016 = 1,764.22
\]

### 5. **Other Fees:**
The other fees are given as \$1,350.

### 6. **Total Closing Costs:**
Now, summing up all the components:

\[
\text{Total Closing Costs} = \text{Down Payment} + \text{Discount Points} + \text{Origination Fee} + \text{Other Fees}
\]
\[
\text{Total Closing Costs} = 17,184 + 3,150.40 + 1,764.22 + 1,350 = 23,448.62
\]

### Conclusion:
The prospective homeowner would need **\$23,448.62** for closing costs.

Would you like more details on any of these steps or have any questions?

---

Here are 5 related questions to consider:
1. How does the interest rate impact mortgage payments after applying discount points?
2. What other fees could typically be part of closing costs?
3. How does the percentage of the down payment affect loan eligibility?
4. What are the benefits of paying higher origination fees?
5. How are discount points beneficial over the lifetime of a loan?

**Tip:** It's often a good idea to get a loan estimate from multiple lenders to compare closing costs and interest rates.

Calculate how much money a prospective homeowner would need for closing costs on a house that costs $143,200. Calculate based on a 12 percent down payment, 2.5 discount points on the loan, a 1.4 point origination fee, and $1,350 in other fees.

Learn how to calculate closing costs for a $143,200 home, with a 12% down payment, 2.5 discount points on the loan, a 1.4 point origination fee, and $1,350 in additional fees. A step-by-step guide that covers all essential cost components and their calculation methods.

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