Question

the chart shows the costs associated with the purchase of a new home.

components	cost
origination fee	$1,200
closing costs	$4,800
total principal	$246,000
additional taxes	$4,000

in the chart, closing costs refers to the

• cost of making repairs to the new home.
• fees that must be paid to local schools.
• costs associated with obtaining the loan.
• fees assessed by the state or local government.

Explanation:

To determine what closing costs refer to, we analyze each option:

• "Cost of making repairs to the new home" is incorrect as closing costs are related to the loan/transaction, not repairs.
• "Fees that must be paid to local schools" is incorrect; school fees are not typically part of closing costs.
• "Costs associated with obtaining the loan" is correct. Closing costs often include fees (like origination fee, etc.) related to getting the mortgage loan.
• "Fees assessed by the state or local government" are usually taxes (like additional taxes here) and not closing costs.

Answer:

C. costs associated with obtaining the loan.