Sure! Let's break down the calculations step by step to find the total mortgage amount for the given purchase.
1. Purchase Price:
The purchase price of the property is \[tex]$240,000.
2. Down Payment:
The down payment percentage is 10%.
\[
\text{Down Payment} = \text{Purchase Price} \times \text{Down Payment Percentage} = \$[/tex]240,000 \times 0.10 = \[tex]$24,000
\]
3. Loan Amount:
The loan amount is the purchase price minus the down payment.
\[
\text{Loan Amount} = \text{Purchase Price} - \text{Down Payment} = \$[/tex]240,000 - \[tex]$24,000 = \$[/tex]216,000
\]
4. Credit Report Cost:
The cost for the credit report is \[tex]$200.
5. Loan Origination Fee:
The loan origination fee percentage is 1%.
\[
\text{Loan Origination Fee} = \text{Loan Amount} \times \text{Loan Origination Fee Percentage} = \$[/tex]216,000 \times 0.01 = \[tex]$2,160
\]
6. Attorney and Notary Cost:
The cost for the attorney and notary is \$[/tex]500.
7. Documentation Stamp:
The documentation stamp percentage is 0.50%.
[tex]\[
\text{Documentation Stamp Cost} = \text{Loan Amount} \times \text{Documentation Stamp Percentage} = \$216,000 \times 0.005 = \$1,080
\][/tex]
8. Processing Fee:
The processing fee is \[tex]$200.
9. Total Closing Costs:
Sum up all the individual closing costs (credit report, loan origination fee, attorney and notary, documentation stamp, and processing fee).
\[
\text{Total Closing Costs} = \$[/tex]200 + \[tex]$2,160 + \$[/tex]500 + \[tex]$1,080 + \$[/tex]200 = \[tex]$4,140
\]
10. Total Mortgage:
The total mortgage is the loan amount plus the total closing costs.
\[
\text{Total Mortgage} = \text{Loan Amount} + \text{Total Closing Costs} = \$[/tex]216,000 + \[tex]$4,140 = \$[/tex]220,140
\]
So, the total mortgage amount for a \[tex]$240,000 purchase, a 10% down payment, and the given closing costs is \$[/tex]220,140.
