what is the total mortgage for a $240,000 purchase, a 5% down payment, and the closing costs shown in the…

what is the total mortgage for a $240,000 purchase, a 5% down payment, and the closing costs shown in the table? credit report $400.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $600.00

what is the total mortgage for a $240,000 purchase, a 5% down payment, and the closing costs shown in the table? credit report $400.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $600.00

Answer

Answer:

$233,800

Explanation:

Step1: Calculate down - payment amount

$240000\times0.05 = 12000$

Step2: Calculate loan amount

$240000 - 12000=228000$

Step3: Calculate loan origination fee

$228000\times0.01 = 2280$

Step4: Calculate documentation stamp fee

$228000\times0.005 = 1140$

Step5: Calculate total closing costs

$400 + 2280+500 + 1140+600=4920$

Step6: Calculate total mortgage

$228000+4920 = 233800$