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To solve this problem, we need to determine Kari's total closing costs based on the given information.

### Step-by-Step Calculation

1. **Calculate the Down Payment**:
   \[
   \text{Down Payment} = 25\% \times 260,000 = 0.25 \times 260,000 = 65,000
   \]

2. **Calculate the Amount Financed**:
   \[
   \text{Amount Financed} = 260,000 - 65,000 = 195,000
   \]

3. **Discount Points Cost**:
   The cost of each discount point is 1% of the amount financed. Since Kari is paying for 3 discount points:
   \[
   \text{Discount Points Cost} = 3\% \times 195,000 = 0.03 \times 195,000 = 5,850
   \]

4. **Title Insurance Premium**:
   The title insurance premium is also calculated as 1% of the amount financed:
   \[
   \text{Title Insurance Premium} = 1\% \times 195,000 = 0.01 \times 195,000 = 1,950
   \]

5. **Other Closing Costs**:
   The additional closing costs are given directly:
   - Credit Report: $90
   - Appraisal Fee: $110
   - Title Search: $300
   - Attorney’s Fees: $500

6. **Total Closing Costs Calculation**:
   Add all the individual costs together:
   \[
   \text{Total Closing Costs} = 5,850 + 1,950 + 90 + 110 + 300 + 500 = 8,800
   \]

### Answer
Kari's total closing costs are **$8,800**.

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Would you like further explanation or have any questions about this solution?

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Here are some related questions to explore:

1. How would the closing costs change if the discount points were reduced to 2 points?
2. What would the amount financed be if Kari increased her down payment to 30%?
3. How would a 10% mortgage interest rate impact the monthly payment compared to the current 8% rate?
4. What additional costs might Kari face if she had to pay private mortgage insurance (PMI)?
5. How would the closing costs change if the title insurance premium increased to 2%?

**Tip:** When calculating financial problems, always confirm that you are using the correct percentage rates for each component.

Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed with a 15-year mortgage at 8% and 3 discount points. Kari made a deposit of $20,000 (applied to the down payment) when the sales contract was signed. Kari also has these expenses: credit report, $90; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $300; and attorney's fees, $500. Find the closing costs (in $).

Learn how to calculate closing costs for a home purchase priced at $260,000 with a 25% down payment and a 15-year mortgage at 8% interest. Detailed step-by-step breakdown of costs, including discount points, title insurance, and other expenses. Suitable for Grades 10-12.

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