what is the total mortgage for a $250,000 purchase, a 10% down payment, and the closing costs shown in the…

what is the total mortgage for a $250,000 purchase, a 10% down payment, and the closing costs shown in the table?\n|credit report|$400.00|\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 down - payment amount
The purchase price is $250000$. The down - payment is 10% of the purchase price. So the down - payment amount is $250000\times0.1 = 25000$.
Step2: Calculate the loan amount
The loan amount is the purchase price minus the down - payment. So it is $250000−25000=225000$.
Step3: Calculate the loan origination fee
The loan origination fee is 1% of the loan amount. So it is $225000\times0.01 = 2250$.
Step4: Calculate the documentation stamp fee
The documentation stamp fee is 0.50% of the loan amount. So it is $225000\times0.005=1125$.
Step5: Calculate the total closing costs
The closing costs include a credit report of $400$, a loan origination fee of $2250$, an attorney and notary fee of $500$, a documentation stamp fee of $1125$, and a processing fee of $500$. The total closing costs are $400 + 2250+500 + 1125+500=4775$.
Step6: Calculate the total mortgage
The total mortgage is the loan amount plus the total closing costs. So it is $225000+4775 = 229775$.
Answer:
$229775$