Problem
JACQUELINE WALDRUM Question 1 of 15, Step 1 of 1 $0 / 15$ Correct 3 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. Answer
Solution
Step 1 ：Calculate the down payment which is 10% of the house price: \(170000 \times 0.10 = 17000\) dollars.
Step 2 ：Add all the closing costs which include homeowners insurance, property tax, title fee, and transaction fees: \(900 + 1050 + 150 + 400 = 2500\) dollars.
Step 3 ：The points paid for a reduction in interest rate are not included in the closing costs.
Step 4 ：Final Answer: The amount of money Isabel needs to cover closing costs is \(\boxed{2500}\) dollars.
