what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the…

what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the table?\n|credit report|$200.00|\n|loan origination fee|1%|\n|attorney and notary|$500.00|\n|documentation stamp|0.50%|\n|processing fee|$200.00|

what is the total mortgage for a $320,000 purchase, a 20% down payment, and the closing costs shown in the table?\n|credit report|$200.00|\n|loan origination fee|1%|\n|attorney and notary|$500.00|\n|documentation stamp|0.50%|\n|processing fee|$200.00|

Answer

Explanation:

Step1: Calculate down - payment amount

The down - payment is 20% of $320,000. So the down - payment amount $d = 0.2\times320000=64000$.

Step2: Calculate the loan amount

The loan amount $L$ is the purchase price minus the down - payment. So $L = 320000 - 64000=256000$.

Step3: Calculate loan origination fee

The loan origination fee is 1% of the loan amount. So the loan origination fee $f_1=0.01\times256000 = 2560$.

Step4: Calculate documentation stamp fee

The documentation stamp fee is 0.5% of the loan amount. So the documentation stamp fee $f_2=0.005\times256000=1280$.

Step5: Calculate total closing costs

The total closing costs $C$ are the sum of the credit report cost, loan origination fee, attorney and notary cost, documentation stamp fee, and processing fee. So $C=200 + 2560+500 + 1280+200=4740$.

Step6: Calculate total mortgage

The total mortgage $M$ is the loan amount plus the total closing costs. So $M = 256000+4740=260740$.

Answer:

$260740$