James is selling his condominium in Colorado Springs for $320,000. Colorado imposes a documentary fee of $0.01 per $100 of consideration (or fraction thereof). How much is the total documentary fee owed at closing?
Correct Answer
A) $32.00
Step 1 — Identify the rate: Colorado's documentary fee is $0.01 per $100 of consideration under C.R.S. § 39-13-102. Step 2 — Calculate the number of $100 units: $320,000 ÷ $100 = 3,200 units. Step 3 — Multiply by the rate: 3,200 × $0.01 = $32.00. The total documentary fee is $32.00.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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