what is the total mortgage for a $280,000 purchase, a 5% down payment, and the closing costs shown in the…

what is the total mortgage for a $280,000 purchase, a 5% down payment, and the closing costs shown in the table?\n| credit report | $300.00 |\n| loan origination fee | 1% |\n| attorney and notary | $500.00 |\n| documentation stamp | 0.50% |\n| processing fee | $400.00 |

what is the total mortgage for a $280,000 purchase, a 5% down payment, and the closing costs shown in the table?\n| credit report | $300.00 |\n| loan origination fee | 1% |\n| attorney and notary | $500.00 |\n| documentation stamp | 0.50% |\n| processing fee | $400.00 |

Answer

Explanation:

Step1: Calculate down payment

$280,000 \times 5% = 14,000$

Step2: Determine loan principal (purchase price - down payment)

$280,000 - 14,000 = 266,000$

Step3: Calculate percentage-based closing costs

Loan origination fee: $266,000 \times 1% = 2,660$
Documentation stamp: $266,000 \times 0.5% = 1,330$

Step4: Sum fixed closing costs

$300 + 500 + 400 = 1,200$

Step5: Total closing costs (fixed + percentage-based)

$1,200 + 2,660 + 1,330 = 5,190$

Step6: Calculate total mortgage (loan principal + closing costs)

$266,000 + 5,190 = 271,190$

Answer:

$271,190$