You wish to purchase a house for $240,000 and you would like to put 10% down pay

Question

You wish to purchase a house for $240,000 and you would like to put

10% down payment. You can get a 30-year fixed rate mortgage loan at 4.00% Annual rate with

monthly compounding and no points. Your closing fees (abstract, legal, inspections, etc.) are

expected to be $2,500. Your PMI (if applicable) is $100/month for the first 3 years, your

property taxes are $3,600/year and your casualty insurance is $1,800/year. Your lender will

collect the PMI, property tax and casualty insurance as monthly escrow payments along with

Explanation / Answer

Therefore, the correct answer is option d. $26,500.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.