Mathematics, 28.03.2020 06:09 tmrsavage02p7cj16
A lender estimates the closing costs on a home loan will be 3.75% of the loan amount of $120,000. The actual closing costs are listed below. Evaluate the lender’s good faith estimate.
a.
The lender made an excellent estimate; it was equal to the actual closing costs.
b.
The lender made a very good estimate; it was within 0.25% of the actual closing costs.
c.
The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs.
d.
The lender made a poor estimate; it was off by more than 0.5% of the actual closing costs.
The answer is A. The lender made an excellent estimate; it was equal to the actual closing costs.
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