For a sales price of $237,000 with a $10,000 deposit and a 20% down payment, how much more does the borrower need to bring to closing for the down payment?

For a sales price of $237,000 with a $10,000 deposit and a 20% down payment, how much more does the borrower need to bring to closing for the down payment?

• A. $30,000
• B. $37,400
• C. $45,600
• D. $50,000

Answer: (B)

To determine how much more the borrower needs to bring to closing for the down payment, you first need to calculate the total down payment required based on the sales price and then subtract the deposit that has already been paid. The sales price of the property is $237,000. Since a 20% down payment is required, we calculate the down payment amount as follows: \[ \text{Down Payment} = \text{Sales Price} \times \text{Down Payment Percentage} \] \[ \text{Down Payment} = 237,000 \times 0.20 = 47,400 \] Next, the borrower has made a deposit of $10,000 toward this down payment. To find out how much more the borrower needs to bring to closing, subtract the deposit from the total down payment: \[ \text{Amount Needed for Closing} = \text{Total Down Payment} - \text{Deposit} \] \[ \text{Amount Needed for Closing} = 47,400 - 10,000 = 37,400 \] This calculation shows that the borrower needs to bring $37,400 to closing to satisfy the down payment requirement after accounting for the deposit that

To determine how much more the borrower needs to bring to closing for the down payment, you first need to calculate the total down payment required based on the sales price and then subtract the deposit that has already been paid.

The sales price of the property is $237,000. Since a 20% down payment is required, we calculate the down payment amount as follows:

[

\text{Down Payment} = \text{Sales Price} \times \text{Down Payment Percentage}

]

[

\text{Down Payment} = 237,000 \times 0.20 = 47,400

]

Next, the borrower has made a deposit of $10,000 toward this down payment. To find out how much more the borrower needs to bring to closing, subtract the deposit from the total down payment:

[

\text{Amount Needed for Closing} = \text{Total Down Payment} - \text{Deposit}

]

[

\text{Amount Needed for Closing} = 47,400 - 10,000 = 37,400

]

This calculation shows that the borrower needs to bring $37,400 to closing to satisfy the down payment requirement after accounting for the deposit that