The chart shows the costs associated with the purchase of
a new home.
In the chart, closing costs refers to the
Cost
Components
Principal after down
payment
O cost of making repairs to the new home.
O fees that must be paid to local schools.
O costs associated with obtaining the loan.
O fees assessed by the state or local government.
$240 000
Origination fee
$1 200
Closing costs
$4 800
Total principal
$246.000
Additional taxes
$4,000
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