The price of a home is S218.000. The bank requires a 20% down payment and three

Question

The price of a home is S218.000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 8%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? Round to the nearest dollar as needed. d. Find the monthly payment (excluding escrowed taxes and insurance) Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. Round to the nearest dollar as needed.) Enter your answer in each of the answer boxes.

Explanation / Answer

Solution:

Soution a ) The down payment amount would be 218000*20% = $43,600

b) The amount of mortage = 218000 - 43600 = $1,74,400.

c) point mean 3% of amount financed has to be paid at closing = 1 74 400*3% = $5,232

total amount to be paid at closing = 43,600+5,232 = $48,832.

d) The monthyl payment except taxes and insurance will be = $ 1 280

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