Real Estate Math

A Louisiana buyer wants to purchase a property for $275,000 with a 20% down payment. The closing costs total 3% of the loan amount. What is the total cash needed at closing?

A$61,600✓ Correct
B$62,050
C$55,000
D$60,500

Explanation

Down payment: $275,000 × 20% = $55,000. Loan amount: $275,000 × 80% = $220,000.

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