what is the total mortgage for a $200,000 purchase, a 15% down payment, and the closing costs shown in the…

what is the total mortgage for a $200,000 purchase, a 15% down payment, and the closing costs shown in the table?\n| credit report | $300.00 |\n| loan origination fee | 1% |\n| attorney and notary | $500.00 |\n| documentation stamp | 0.50% |\n| processing fee | $500.00 |
Answer
Explanation:
Step1: Calculate the loan amount after down payment
The down payment is 15%, so the loan amount is ( $200,000 \times (1 - 0.15) = $170,000 ).
Step2: Calculate percentage-based closing costs
Loan origination fee (1% of loan amount): ( $170,000 \times 0.01 = $1,700 )
Documentation stamp (0.5% of loan amount): ( $170,000 \times 0.005 = $850 )
Step3: Sum fixed closing costs
Credit Report: $300
Attorney and notary: $500
Processing Fee: $500
Total fixed costs: ( $300 + $500 + $500 = $1,300 )
Step4: Calculate total mortgage (loan amount + all closing costs)
Total closing costs: ( $1,700 + $850 + $1,300 = $3,850 )
Total mortgage: ( $170,000 + $3,850 = $173,850 )
Answer:
$173,850