If a home costs $150,000, what would be the possible range for closing costs?

If a home costs $150,000, what would be the possible range for closing costs?

• A. $1,500 to $3,000
• B. $2,000 to $5,000
• C. $3,000 to $7,500
• D. $10,000 to $15,000

Answer: (C)

Closing costs can vary widely based on several factors, including location, the type of loan, and the specific terms negotiated during the sale. In general, closing costs typically range from about 2% to 5% of the purchase price of the home. For a home priced at $150,000, calculating 2% to 5% gives us a range of $3,000 to $7,500. Choosing the range of $3,000 to $7,500 accurately reflects this typical percentage of closing costs based on the home’s sale price. This understanding helps homebuyers budget appropriately for the total cost involved in purchasing a home, beyond just the sale price. Therefore, the option that captures this standard range is the most appropriate answer, as it aligns with typical real estate practices and expectations concerning closing costs.

Closing costs can vary widely based on several factors, including location, the type of loan, and the specific terms negotiated during the sale. In general, closing costs typically range from about 2% to 5% of the purchase price of the home. For a home priced at $150,000, calculating 2% to 5% gives us a range of $3,000 to $7,500.

Choosing the range of $3,000 to $7,500 accurately reflects this typical percentage of closing costs based on the home’s sale price. This understanding helps homebuyers budget appropriately for the total cost involved in purchasing a home, beyond just the sale price. Therefore, the option that captures this standard range is the most appropriate answer, as it aligns with typical real estate practices and expectations concerning closing costs.