Answer :
To determine the total mortgage for a \[tex]$240,000 purchase with a 10% down payment and the associated closing costs as provided, we need to follow a detailed, step-by-step calculation process. Here's how to do it:
1. Calculate the Down Payment:
- The down payment percentage is 10%.
- Down payment = \( 10\% \) of \$[/tex]240,000.
- Down payment = [tex]\( 0.10 \times 240,000 \)[/tex].
- Down payment = \[tex]$24,000. 2. Calculate the Loan Origination Fee: - The loan origination fee percentage is 1%. - Loan origination fee = \( 1\% \) of \$[/tex]240,000.
- Loan origination fee = [tex]\( 0.01 \times 240,000 \)[/tex].
- Loan origination fee = \[tex]$2,400. 3. Calculate the Documentation Stamp Cost: - The documentation stamp percentage is 0.50%. - Documentation stamp cost = \( 0.50\% \) of \$[/tex]240,000.
- Documentation stamp cost = [tex]\( 0.005 \times 240,000 \)[/tex].
- Documentation stamp cost = \[tex]$1,200. 4. Sum All the Closing Costs: - Given closing costs are: - Credit report = \$[/tex]200.
- Loan origination fee = \[tex]$2,400. - Attorney and notary = \$[/tex]500.
- Documentation stamp = \[tex]$1,200. - Processing fee = \$[/tex]200.
- Total closing costs = \[tex]$200 + \$[/tex]2,400 + \[tex]$500 + \$[/tex]1,200 + \[tex]$200. - Total closing costs = \$[/tex]4,500.
5. Calculate the Loan Amount After Down Payment:
- Initial purchase price = \[tex]$240,000. - Subtract the down payment = \$[/tex]240,000 - \[tex]$24,000. - Loan amount = \$[/tex]216,000.
6. Calculate the Total Mortgage:
- Total mortgage = Loan amount + Total closing costs.
- Total mortgage = \[tex]$216,000 + \$[/tex]4,500.
- Total mortgage = \[tex]$220,500. Thus, the total mortgage for a \$[/tex]240,000 purchase with a 10% down payment and specified closing costs is \$220,500.
- Down payment = [tex]\( 0.10 \times 240,000 \)[/tex].
- Down payment = \[tex]$24,000. 2. Calculate the Loan Origination Fee: - The loan origination fee percentage is 1%. - Loan origination fee = \( 1\% \) of \$[/tex]240,000.
- Loan origination fee = [tex]\( 0.01 \times 240,000 \)[/tex].
- Loan origination fee = \[tex]$2,400. 3. Calculate the Documentation Stamp Cost: - The documentation stamp percentage is 0.50%. - Documentation stamp cost = \( 0.50\% \) of \$[/tex]240,000.
- Documentation stamp cost = [tex]\( 0.005 \times 240,000 \)[/tex].
- Documentation stamp cost = \[tex]$1,200. 4. Sum All the Closing Costs: - Given closing costs are: - Credit report = \$[/tex]200.
- Loan origination fee = \[tex]$2,400. - Attorney and notary = \$[/tex]500.
- Documentation stamp = \[tex]$1,200. - Processing fee = \$[/tex]200.
- Total closing costs = \[tex]$200 + \$[/tex]2,400 + \[tex]$500 + \$[/tex]1,200 + \[tex]$200. - Total closing costs = \$[/tex]4,500.
5. Calculate the Loan Amount After Down Payment:
- Initial purchase price = \[tex]$240,000. - Subtract the down payment = \$[/tex]240,000 - \[tex]$24,000. - Loan amount = \$[/tex]216,000.
6. Calculate the Total Mortgage:
- Total mortgage = Loan amount + Total closing costs.
- Total mortgage = \[tex]$216,000 + \$[/tex]4,500.
- Total mortgage = \[tex]$220,500. Thus, the total mortgage for a \$[/tex]240,000 purchase with a 10% down payment and specified closing costs is \$220,500.
