what is the total mortgage for a $180,000 purchase, a 20% down payment, and the closing costs shown in the…

what is the total mortgage for a $180,000 purchase, a 20% down payment, and the closing costs shown in the table? credit report $100.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $500.00

what is the total mortgage for a $180,000 purchase, a 20% down payment, and the closing costs shown in the table? credit report $100.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $500.00

Answer

Explanation:

Step1: Calculate the loan - amount

The purchase price is $180,000 and the down - payment is 20% of $180,000. The loan amount $L$ is $(1 - 0.20)\times180000=0.8\times180000 = 144000$.

Step2: Calculate the loan origination fee

The loan origination fee is 1% of the loan amount. So, the loan origination fee $F_1=0.01\times144000 = 1440$.

Step3: Calculate the documentation stamp fee

The documentation stamp fee is 0.50% of the loan amount. So, the documentation stamp fee $F_2=0.005\times144000 = 720$.

Step4: Calculate the total closing costs

The closing costs include a credit report fee of $100, an attorney and notary fee of $500, a documentation stamp fee of $720, a processing fee of $500, and a loan origination fee of $1440. The total closing costs $C=100 + 500+720 + 500+1440=3260$.

Step5: Calculate the total mortgage

The total mortgage is the sum of the loan amount and the total closing costs. So, the total mortgage $M = 144000+3260=147260$.

Answer:

$147260$