To find the total mortgage for a purchase price of \[tex]$190,000, a 20% down payment, and the given closing costs, we need to follow several steps.
1. Determine the down payment:
- The down payment percentage is 20%.
- The down payment amount is calculated as:
\[
\text{Down payment} = 190,000 \times 0.20 = 38,000
\]
2. Calculate the closing costs:
- The closing costs provided are:
- Credit Report: \$[/tex]300.00
- Loan Origination Fee: 1% of the purchase price
- Attorney and Notary: \[tex]$500.00
- Documentation Stamp: 0.50% of the purchase price
- Processing Fee: \$[/tex]600.00
- The loan origination fee amount is:
[tex]\[
\text{Loan origination fee} = 190,000 \times 0.01 = 1,900
\][/tex]
- The documentation stamp amount is:
[tex]\[
\text{Documentation stamp fee} = 190,000 \times 0.005 = 950
\][/tex]
- Adding up all these costs:
[tex]\[
\text{Total closing costs} = 300.00 + 1,900 + 500.00 + 950 + 600.00 = 4,250.00
\][/tex]
3. Calculate the total amount needed initially:
- This includes the down payment and the total closing costs:
[tex]\[
\text{Initial amount needed} = \text{Down payment} + \text{Total closing costs} = 38,000 + 4,250 = 42,250
\][/tex]
4. Determine the total mortgage amount:
- To find the total mortgage, we need to subtract the down payment from the purchase price:
[tex]\[
\text{Total mortgage} = \text{Purchase price} - \text{Down payment} = 190,000 - 38,000 = 152,000
\][/tex]
Therefore, the total mortgage amount would be \$152,000, following the down payment and excluding the closing costs, which are paid upfront.
