Erwin is purchasing a $190,000 home and is making a 20% down payment toward the cost. he is also buying 2 points in order to lower his interest rate. the appraisal fee is $400, the title is $300, and the processing fee is $575. including the down payment, what are his total closing costs?

His total closing costs are $42,315.

Each point on a mortgage is 1% of the loan value.  Since he is paying 20% down, the loan amount will be after this is paid.  20% of 190000 = 0.2(190000)=38000.  The remaining loan will be 190000-38000=152000.  2 points will be 2% of this loan amount; 0.02(152000)=3040.  This means his upfront costs are:

38000 down payment
3040 for points
400 appraisal fee
300 title
575 processing fee

for a grand total of 42315.

The answer would be $42,315

Hope this helps :)