Let's break down the solution step-by-step to determine the total mortgage for a purchase price of [tex]$190,000, given a 20% down payment and specific closing costs.
1. Purchase Price and Down Payment:
The purchase price of the house is $[/tex]190,000. The down payment required is 20% of the purchase price.
[tex]\[
\text{Down Payment} = 0.20 \times 190,000 = 38,000
\][/tex]
2. Loan Origination Fee:
The loan origination fee is 1% of the purchase price.
[tex]\[
\text{Loan Origination Fee} = 0.01 \times 190,000 = 1,900
\][/tex]
3. Documentation Stamp Cost:
The cost for the documentation stamp is 0.50% of the purchase price.
[tex]\[
\text{Documentation Stamp Cost} = 0.005 \times 190,000 = 950
\][/tex]
4. Other Closing Costs:
The other closing costs as given are:
- Credit Report: [tex]$500
- Attorney and Notary: $[/tex]500
- Processing Fee: [tex]$500
5. Total Closing Costs:
We need to sum all the individual closing costs:
\[
\text{Closing Costs} = \text{Credit Report} + \text{Loan Origination Fee} + \text{Attorney and Notary} + \text{Documentation Stamp Cost} + \text{Processing Fee}
\]
\[
\text{Closing Costs} = 500 + 1,900 + 500 + 950 + 500 = 4,350
\]
6. Loan Amount (without down payment):
The loan amount is the purchase price minus the down payment.
\[
\text{Loan Amount} = 190,000 - 38,000 = 152,000
\]
7. Total Mortgage:
The total mortgage amount includes the loan amount plus the closing costs.
\[
\text{Total Mortgage} = \text{Loan Amount} + \text{Closing Costs}
\]
\[
\text{Total Mortgage} = 152,000 + 4,350 = 156,350
\]
So, the total mortgage for a $[/tex]190,000 purchase, considering a 20% down payment and the specified closing costs, is $156,350.
