Calculate how much money a prospective homeowner would need for closing costs on a house that costs ​$117 comma 500. Calculate based on a 25 percent down​ payment, 1.3 discount points on the​ loan, a 1.4 point origination​ fee, and ​$770 in other fees.

To calculate the total amount of money the prospective homeowner would need for closing costs, we need to break down the costs step by step.

### 1. **Down Payment (25% of $117,500):**
The homeowner is required to pay 25% of the home's price as a down payment:
\[
\text{Down Payment} = 25\% \times 117,500 = 0.25 \times 117,500 = 29,375
\]

### 2. **Loan Amount:**
The loan amount is the remaining cost after the down payment. This is:
\[
\text{Loan Amount} = 117,500 - 29,375 = 88,125
\]

### 3. **Discount Points (1.3% of the Loan Amount):**
Discount points are calculated as 1.3% of the loan amount:
\[
\text{Discount Points} = 1.3\% \times 88,125 = 0.013 \times 88,125 = 1,145.63
\]

### 4. **Origination Fee (1.4% of the Loan Amount):**
The origination fee is calculated as 1.4% of the loan amount:
\[
\text{Origination Fee} = 1.4\% \times 88,125 = 0.014 \times 88,125 = 1,233.75
\]

### 5. **Other Fees:**
The homeowner must also pay additional fees of $770.

### 6. **Total Closing Costs:**
Now, we sum all the costs involved:

- Down Payment: $29,375
- Discount Points: $1,145.63
- Origination Fee: $1,233.75
- Other Fees: $770

\[
\text{Total Closing Costs} = 29,375 + 1,145.63 + 1,233.75 + 770 = 32,524.38
\]

### Final Answer:
The total amount of money the prospective homeowner would need for closing costs is **$32,524.38**.

Would you like further details or have any questions about this calculation?

Here are 5 related questions you might find useful:
1. How do different loan types affect closing costs?
2. What are common hidden fees in mortgage agreements?
3. How do discount points impact the overall cost of a loan?
4. What is the difference between a loan's origination fee and underwriting fee?
5. Can closing costs be rolled into a mortgage loan?

**Tip:** Always review the Loan Estimate document provided by the lender to see a breakdown of closing costs before agreeing to terms.

Calculate how much money a prospective homeowner would need for closing costs on a house that costs $117,500. Calculate based on a 25 percent down payment, 1.3 discount points on the loan, a 1.4 point origination fee, and $770 in other fees.

Learn how to calculate the closing costs for a $117,500 home, including a 25% down payment, 1.3% discount points, 1.4% origination fee, and additional fees. This problem covers percentage calculations, loan amounts, and total closing costs.

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