QUESTION IMAGE
Question
what are closing costs in a mortgage transaction?
fees and
expenses
associated with
finalizing the
mortgage
agreement
costs incurred
from refinancing a
mortgage
penalties for
paying off the
mortgage early
charges for
terminating a
mortgage
agreemnt before
its maturity
Closing costs in a mortgage transaction are the fees and expenses related to finalizing the mortgage agreement. The second option refers to refinancing costs, the third to prepayment penalties, and the fourth to early termination charges, which are not closing costs. The first option matches the definition of closing costs.
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A. fees and expenses associated with finalizing the mortgage agreement