To determine the total mortgage for a [tex]$280,000 purchase price, we need to work through the details step-by-step:
### Step 1: Calculate the Down Payment
The down payment is 5% of the purchase price:
\[ \text{Down Payment} = 0.05 \times 280,000 = 14,000 \text{ dollars} \]
### Step 2: Calculate the Remaining Balance
Subtract the down payment from the purchase price to find the remaining balance:
\[ \text{Remaining Balance} = 280,000 - 14,000 = 266,000 \text{ dollars} \]
### Step 3: Calculate the Loan Origination Fee
The loan origination fee is 1% of the remaining balance:
\[ \text{Loan Origination Fee} = 0.01 \times 266,000 = 2,660 \text{ dollars} \]
### Step 4: Calculate the Documentation Stamp Cost
The documentation stamp cost is 0.50% of the remaining balance:
\[ \text{Documentation Stamp Cost} = 0.005 \times 266,000 = 1,330 \text{ dollars} \]
### Step 5: Calculate the Total Closing Costs
Add up all the separate closing costs:
\[ \text{Total Closing Costs} = 300 + 2,660 + 500 + 1,330 + 400 = 5,190 \text{ dollars} \]
### Step 6: Calculate the Total Mortgage
Add the total closing costs to the remaining balance to find the total mortgage amount:
\[ \text{Total Mortgage} = 266,000 + 5,190 = 271,190 \text{ dollars} \]
Thus, the total mortgage amount is \$[/tex]271,190.
