How can upfront charges of a home loan be converted into a percentage?

To convert upfront charges of a home loan into a percentage, the appropriate method involves taking the total charges and dividing them by the total amount of the home loan. This division gives you a fraction, which represents the proportion of the upfront charges relative to the loan amount. To express this fraction as a percentage, you must then multiply the result by 100.

Thus, the formula shows that by using the total charges divided by the home loan amount and then applying the multiplication by 100, you accurately determine the upfront charges as a percentage of the total loan. This method is crucial for assessing how much the upfront costs will impact the overall borrowing costs.