what is the total mortgage for a $220,000 purchase, a 5% down payment, and the closing costs shown in the…

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

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)