what is the total mortgage for a $240,000 purchase, a 10% down payment, and the closing costs shown in the…

what is the total mortgage for a $240,000 purchase, a 10% down payment, and the closing costs shown in the table?

what is the total mortgage for a $240,000 purchase, a 10% down payment, and the closing costs shown in the table?

Answer

Explanation:

Step1: Calculate the loan origination fee

The loan amount is ( $240,000). The loan origination fee is (1%) of the loan amount. So, the loan origination fee is (240000\times0.01=$2400)

Step2: Calculate the documentation stamp fee

The documentation stamp fee is (0.5%) of the loan amount. So, the documentation stamp fee is (240000\times0.005 = $1200)

Step3: Sum up all the closing - cost items

The closing - cost items are: Credit Report (($200)), Loan Origination Fee (($2400)), Attorney and Notary (($500)), Documentation Stamp (($1200)), Processing Fee (($200)) [200 + 2400+500 + 1200+200] [=(200 + 500+200)+(2400 + 1200)] [=900+3600=$4500]

Answer:

($4500)