what is the total mortgage for a $260,000 purchase, a 15% down payment, and the closing costs shown in the…

what is the total mortgage for a $260,000 purchase, a 15% down payment, and the closing costs shown in the table? credit report $300.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $400.00

what is the total mortgage for a $260,000 purchase, a 15% down payment, and the closing costs shown in the table? credit report $300.00 loan origination fee 1% attorney and notary $500.00 documentation stamp 0.50% processing fee $400.00

Answer

Explanation:

Step1: Calculate the down - payment amount

The down - payment is 15% of the purchase price. The purchase price is $260000. So the down - payment amount is $260000\times0.15 = 39000$.

Step2: Calculate the loan amount

The loan amount is the purchase price minus the down - payment. So it is $260000−39000 = 221000$.

Step3: Calculate the loan origination fee

The loan origination fee is 1% of the loan amount. So it is $221000\times0.01=2210$.

Step4: Calculate the documentation stamp fee

The documentation stamp fee is 0.50% of the loan amount. So it is $221000\times0.005 = 1105$.

Step5: Calculate the sum of closing costs

The closing costs include the credit report ($300), loan origination fee ($2210), attorney and notary ($500), documentation stamp ($1105), and processing fee ($400). The sum of closing costs is $300 + 2210+500 + 1105+400=4515$.

Step6: Calculate the total mortgage

The total mortgage is the loan amount plus the sum of closing costs. So it is $221000+4515 = 225515$.

Answer:

$225515$