what is the total mortgage for a $200,000 purchase, a 10% down payment, and the closing costs shown in the…

what is the total mortgage for a $200,000 purchase, a 10% down payment, and the closing costs shown in the table? credit report $100.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $500.00

what is the total mortgage for a $200,000 purchase, a 10% down payment, and the closing costs shown in the table? credit report $100.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $500.00

Answer

Explanation:

Step1: Calculate the down - payment amount

The purchase price is $200,000 and the down - payment is 10% of it. So the down - payment amount is $200,000\times0.1=$20,000$. The loan amount $L$ is $200,000 - 20,000=$180,000$.

Step2: Calculate the loan origination fee

The loan origination fee is 1% of the loan amount. So the loan origination fee $F_1$ is $180,000\times0.01=$1,800$.

Step3: Calculate the documentation stamp fee

The documentation stamp fee is 0.50% of the loan amount. So the documentation stamp fee $F_2$ is $180,000\times0.005=$900$.

Step4: Calculate the total closing costs

The closing costs include a credit report of $100, a loan origination fee of $1,800, attorney and notary of $500, documentation stamp of $900 and processing fee of $500. The total closing costs $C$ is $100 + 1800+500 + 900+500=$3,800$.

Step5: Calculate the total mortgage

The total mortgage is the loan amount plus the total closing costs. So the total mortgage $M$ is $180,000+3,800=$183,800$.

Answer:

$183,800$