To determine the total mortgage for a [tex]$280,000 purchase with a 5% down payment and the closing costs shown in the table, let's break it down step-by-step:
### 1. Calculate the down payment:
The down payment is 5% of the purchase price.
\[ \text{Purchase Price} = \$[/tex]280,000 \]
[tex]\[ \text{Down Payment} = 0.05 \times 280,000 = \$14,000 \][/tex]
### 2. Calculate the individual closing costs:
- Credit Report: \[tex]$300.00
- Loan Origination Fee: 1% of the purchase price.
\[ \text{Loan Origination Fee} = 0.01 \times 280,000 = \$[/tex]2,800 \]
- Attorney and Notary: \[tex]$500.00
- Documentation Stamp: 0.50% of the purchase price.
\[ \text{Documentation Stamp} = 0.005 \times 280,000 = \$[/tex]1,400 \]
- Processing Fee: \[tex]$400.00
### 3. Total closing costs:
Add up all the individual closing costs:
\[ \text{Total Closing Costs} = 300 + 2800 + 500 + 1400 + 400 = \$[/tex]5,400 \]
### 4. Calculate the total mortgage amount:
The total mortgage amount is calculated as the purchase price minus the down payment plus the total closing costs.
[tex]\[ \text{Total Mortgage} = \text{Purchase Price} - \text{Down Payment} + \text{Total Closing Costs} \][/tex]
[tex]\[ \text{Total Mortgage} = 280,000 - 14,000 + 5,400 = 266,000 + 5,400 = \$271,400 \][/tex]
### Summary:
- Down Payment: \[tex]$14,000
- Total Closing Costs: \$[/tex]5,400
- Total Mortgage: \[tex]$271,400
Therefore, the total mortgage is \$[/tex]271,400.
