To find the total mortgage for a [tex]$200,000 purchase, a 10% down payment, and the given closing costs, we need to perform the following steps:
1. Calculate the down payment:
A 10% down payment on a $[/tex]200,000 property means:
[tex]\[
\text{Down Payment} = 200,000 \times 0.10 = \$20,000
\][/tex]
2. Calculate the mortgage amount after the down payment:
The mortgage amount is the purchase price minus the down payment:
[tex]\[
\text{Mortgage Amount} = 200,000 - 20,000 = \$180,000
\][/tex]
3. Calculate the individual closing costs:
- Credit Report:
[tex]\[
\text{Credit Report} = \$100.00
\][/tex]
- Loan Origination Fee:
The loan origination fee is 1% of the purchase price:
[tex]\[
\text{Loan Origination Fee} = 200,000 \times 0.01 = \$2,000
\][/tex]
- Attorney and Notary:
[tex]\[
\text{Attorney and Notary} = \$500.00
\][/tex]
- Documentation Stamp:
Documentation stamp is 0.50% of the purchase price:
[tex]\[
\text{Documentation Stamp} = 200,000 \times 0.005 = \$1,000
\][/tex]
- Processing Fee:
[tex]\[
\text{Processing Fee} = \$500.00
\][/tex]
4. Calculate the total closing costs:
Summing up all the closing costs:
[tex]\[
\text{Total Closing Costs} = 100.00 + 2,000 + 500.00 + 1,000 + 500.00 = \$4,100.00
\][/tex]
5. Calculate the total cost to close:
The total mortgage is the sum of the mortgage amount and the closing costs:
[tex]\[
\text{Total Mortgage} = 180,000 + 4,100 = \$184,100.00
\][/tex]
Therefore, the total mortgage for a [tex]$200,000 purchase, with a 10% down payment and the described closing costs, is \$[/tex]184,100.00.
