what is the total mortgage for a $300,000 purchase, a 5% down payment, and the closing costs shown in the…
what is the total mortgage for a $300,000 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 $500.00
Answer
Explanation:
Step1: Calculate down - payment amount
The down - payment is 5% of the purchase price. The purchase price is $300,000. So the down - payment $D = 0.05\times300000=$15000$.
Step2: Calculate the loan amount
The loan amount $L$ is the purchase price minus the down - payment. So $L=300000 - 15000=$285000$.
Step3: Calculate loan origination fee
The loan origination fee is 1% of the loan amount. So the loan origination fee $F_1=0.01\times285000=$2850$.
Step4: Calculate documentation stamp fee
The documentation stamp fee is 0.5% of the loan amount. So the documentation stamp fee $F_2 = 0.005\times285000=$1425$.
Step5: Calculate total closing costs
The total closing costs $C$ is the sum of the credit report cost, loan origination fee, attorney and notary cost, documentation stamp fee and processing fee. $C = 400+2850+500+1425+500=$5675$.
Step6: Calculate total mortgage
The total mortgage $M$ is the loan amount plus the total closing costs. So $M=285000 + 5675=$290675$.
Answer:
$290675$