Alender estimates the closing costs on a home loan of $50,000 as listed below. closing cost charge loan origination $200 title insurance $530 attorney’s fees $600 appraisal $265 inspection $575 recording fees $130 escrow $800 if the lender's good faith estimates are accurate, are they a reasonable amount for closing costs? why or why not? a. yes, because the lender esitmated 3.08% of the home loan in closing costs which falls between 3 - 5%. b. yes, because the lender estimated 4.6% of the home loan in closing costs which does not fall between 3 - 5%. c. no, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 - 5%. d. no, because the lender estimated 17.7% of the home loan in closing costs which does fall between

C- The lender should not consider them as reasonable amount of closing costs because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3-5%.

The lender cannot be accepting these costs as this will lead to the lender incurring losses over a longer period after doing all the necessary calculations.

Hence, the correct option is C that the amounts of $3100 are not a reasonable amount of closing costs because the lender estimated 6.2% of the home loan in closing costs which does not fall between the range of 3-5%.

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c.

No, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 - 5%

Step-by-step explanation:

Summation of the cost of loan =200+530+600+265+575+130+800

=3100

Now percentage of the estimate=

(3100/50000)*100%

=6.2%