1. **State the problem:** Calculate the total closing costs for Choice 2, given a loan amount of 150000, closing costs of 1400, and 2 points. 2. **Understand points:** Points are fees paid to the lender at closing, expressed as a percentage of the loan amount. 1 point = 1% of the loan. 3. **Calculate points cost:** $$\text{Points cost} = 2\% \times 150000 = \frac{2}{100} \times 150000 = 3000$$ 4. **Calculate total closing cost for Choice 2:** $$\text{Total closing cost} = \text{Closing costs} + \text{Points cost} = 1400 + 3000 = 4400$$ 5. **Final answer:** The total closing cost for Choice 2 is $4400. This helps you compare the upfront costs between the two choices when deciding which loan to take.