what is the total mortgage for a $180,000 purchase, a 10% down payment, and the closing costs shown in the…
what is the total mortgage for a $180,000 purchase, a 10% down payment, and the closing costs shown in the table? credit report $300.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $600.00
Answer
Explanation:
Step1: Calculate down - payment amount
The down - payment is 10% of the purchase price. The purchase price is $180,000. So the down - payment $D = 0.1\times180000=18000$.
Step2: Calculate the loan amount
The loan amount $L$ is the purchase price minus the down - payment. So $L = 180000 - 18000=162000$.
Step3: Calculate loan origination fee
The loan origination fee is 1% of the loan amount. So the loan origination fee $F_1=0.01\times162000 = 1620$.
Step4: Calculate documentation stamp fee
The documentation stamp fee is 0.5% of the loan amount. So the documentation stamp fee $F_2=0.005\times162000=810$.
Step5: Calculate total closing costs
The closing costs include credit report ($300), loan origination fee ($1620), attorney and notary ($500), documentation stamp ($810) and processing fee ($600). The total closing costs $C=300 + 1620+500 + 810+600=3830$.
Step6: Calculate total mortgage
The total mortgage is the loan amount plus the total closing costs. So the total mortgage $M = 162000+3830=165830$.
Answer:
$165830$