what is the total mortgage for a $220,000 pur...
what is the total mortgage for a $220,000 purchase, a 5% down payment, and the closing costs shown in the table? credit report $500.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $600.00
Answer
# Answer:
$214,000
# Explanation:
## Step1: Calculate down - payment amount
$220000\times5\%=220000\times0.05 = 11000$
## Step2: Calculate loan amount
$220000 - 11000=209000$
## Step3: Calculate loan origination fee
$209000\times1\%=209000\times0.01 = 2090$
## Step4: Calculate documentation stamp fee
$209000\times0.5\%=209000\times0.005 = 1045$
## Step5: Calculate total closing costs
$500 + 2090+500 + 1045+600=4735$
## Step6: Calculate total mortgage
$209000+4735 = 213735\approx214000$ (rounded to the nearest thousand)