Let's carefully analyze the costs associated with the purchase of a new home as listed in the chart:
1. Principal after down payment: \[tex]$240,000
2. Origination fee: \$[/tex]1,200
3. Closing costs: \[tex]$4,800
4. Total principal: \$[/tex]246,000
5. Additional taxes: \[tex]$4,000
When purchasing a new home, the primary expense is the principal amount after the down payment, which is \$[/tex]240,000. However, this isn't the only cost involved. Buyers also have to consider the following additional costs:
- Origination fee: This is a charge by the lender for processing the loan, amounting to \[tex]$1,200.
- Closing costs: These encompass various fees required to finalize the mortgage, totaling \$[/tex]4,800.
- Additional taxes: This refers to other taxes that may apply when buying a home, which here amounts to \[tex]$4,000.
Summing up these additional fees and costs:
- Origination fee: \$[/tex]1,200
- Closing costs: \[tex]$4,800
- Additional taxes: \$[/tex]4,000
The total amount for these additional fees and costs is:
[tex]\[ \$1,200 + \$4,800 + \$4,000 = \$10,000 \][/tex]
This demonstrates that beyond the principal after the down payment, there are other significant costs to consider. The chart points out an important aspect of home buying – the presence of various additional fees and costs beyond just the principal amount.
Thus, the best conclusion that can be drawn from the information in the chart is:
There are additional fees and costs involved in taking out a mortgage.
