what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the…

what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the table? credit report $200.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $200.00

what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the table? credit report $200.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $200.00

Answer

Explanation:

Step1: Calculate down - payment amount

The down - payment is 20% of the purchase price. The purchase price is $320,000. So the down - payment amount is $320000\times0.2=$64000$.

Step2: Calculate loan amount

The loan amount is the purchase price minus the down - payment. So it is $320000 - 64000=$256000$.

Step3: Calculate loan origination fee

The loan origination fee is 1% of the loan amount. So it is $256000\times0.01=$2560$.

Step4: Calculate documentation stamp fee

The documentation stamp fee is 0.5% of the loan amount. So it is $256000\times0.005=$1280$.

Step5: Calculate total closing costs

The closing costs include credit report ($200), loan origination fee ($2560), attorney and notary ($500), documentation stamp ($1280), and processing fee ($200). The total closing costs are $200 + 2560+500 + 1280+200=$4740$.

Step6: Calculate total mortgage

The total mortgage is the loan amount plus the total closing costs. So it is $256000+4740=$260740$.

Answer:

$260740$