Sure, let's go through the steps to find the total mortgage in a clear and detailed way.
1. Purchase Price and Down Payment Calculation
- The purchase price is [tex]\( \$300,000 \)[/tex].
- The down payment is 20% of the purchase price.
[tex]\[ \text{Down Payment} = \$300,000 \times 0.20 = \$60,000 \][/tex]
2. Mortgage Amount Calculation
- After making the down payment, the mortgage amount is the remaining balance of the purchase price.
[tex]\[ \text{Mortgage Amount} = \$300,000 - \$60,000 = \$240,000 \][/tex]
3. Closing Costs Calculation
- Credit Report Cost: [tex]\( \$600 \)[/tex]
- Loan Origination Fee: 1% of the purchase price
[tex]\[ \text{Loan Origination Fee} = \$300,000 \times 0.01 = \$3,000 \][/tex]
- Attorney and Notary Cost: [tex]\( \$400 \)[/tex]
- Documentation Stamp: 0.5% of the purchase price
[tex]\[ \text{Documentation Stamp} = \$300,000 \times 0.005 = \$1,500 \][/tex]
- Processing Fee: [tex]\( \$200 \)[/tex]
Adding all these together:
[tex]\[ \text{Closing Costs} = \$600 + \$3,000 + \$400 + \$1,500 + \$200 = \$5,700 \][/tex]
4. Total Mortgage Calculation
- The total mortgage includes the mortgage amount and the closing costs.
[tex]\[ \text{Total Mortgage} = \$240,000 + \$5,700 = \$245,700 \][/tex]
Hence, the total mortgage is [tex]\( \$245,700 \)[/tex].
