To determine the total mortgage for a property purchase of [tex]$190,000, given a down payment of 20% and the specified closing costs, we need to follow a series of calculations step-by-step. Let's go through it systematically:
1. Calculate the Down Payment:
- The down payment is 20% of the purchase price.
- Down payment = 20% of $[/tex]190,000
- Down payment = [tex]\(0.20 \times 190,000 = 38,000\)[/tex]
2. Calculate the Loan Origination Fee:
- The loan origination fee is 1% of the purchase price.
- Loan origination fee = 1% of [tex]$190,000
- Loan origination fee = \(0.01 \times 190,000 = 1,900\)
3. Calculate the Documentation Stamp Fee:
- The documentation stamp fee is 0.50% of the purchase price.
- Documentation stamp fee = 0.50% of $[/tex]190,000
- Documentation stamp fee = [tex]\(0.005 \times 190,000 = 950\)[/tex]
4. List Other Closing Costs:
- Credit report = [tex]$300
- Attorney and notary fees = $[/tex]500
- Processing fee = [tex]$600
5. Calculate Total Closing Costs:
- Total closing costs include the credit report, loan origination fee, attorney and notary fees, documentation stamp fee, and processing fee.
- Total closing costs = $[/tex]300 (Credit report) + [tex]$1,900 (Loan origination fee) + $[/tex]500 (Attorney and notary fees) + [tex]$950 (Documentation stamp fee) + $[/tex]600 (Processing fee)
- Total closing costs = [tex]$4,250
6. Calculate the Total Mortgage:
- The total mortgage is the purchase price minus the down payment, plus the total closing costs.
- Total mortgage = $[/tex]190,000 (Purchase price) - [tex]$38,000 (Down payment) + $[/tex]4,250 (Total closing costs)
- Total mortgage = [tex]$152,000 + $[/tex]4,250
- Total mortgage = [tex]$156,250
Therefore, the total mortgage amount is $[/tex]156,250.
