A property sold for $150,000. If the buyer's mortgage requires a 15% down payment and incurs a 1% loan origination fee plus $1,000 in closing costs, how much will the buyer owe at closing?

To determine how much the buyer will owe at closing, it's important to calculate each component of the costs involved.

First, calculate the down payment based on the property's sale price. The down payment is 15% of $150,000, which can be calculated as follows:

[ Down Payment = 0.15 \times 150,000 = 22,500 ]

Next, calculate the loan origination fee. This fee is 1% of the mortgage amount—note that the mortgage amount is the sale price minus the down payment.

The mortgage amount is:

[ Mortgage Amount = 150,000 - 22,500 = 127,500 ]

Now, calculate the loan origination fee:

[ Loan Origination Fee = 0.01 \times 127,500 = 1,275 ]

The closing costs are given as a fixed amount of $1,000.

Now combine all of these costs to find out how much the buyer owes at closing. The total amount is the down payment along with the loan origination fee and closing costs:

[ Total Owed at Closing = Down Payment + Loan Origination Fee + Closing Costs
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