Question

a.

1. The price of a home is $220,000. The bank requires a 20% down

payment and three points at the time of closing. The cost of the

home is financed with a 30-year fixed-rate mortgage at 7%.

Find the required down payment.

b. Find the amount of the mortgage.

c. How much must be paid for the three points at

closing?

d. Find the monthly payment (excluding escrowed taxes

and insurance).

e. Find the total cost of interest over 30 years.

nearest

Answer 1

Answer:

Kindly check explanation

Step-by-step explanation:

Given the following :

Price of home = $220,000

Down payment = 20%

3 points at closing

30 years fixed rate mortgage at 7%

A.)The down payment :

20% of price

0.2 × $220,000 = $44,000

B.) Amount of the Mortgage :

Price - down payment

$220,000 - $44,000 = $176,000

C.) Amount to be paid for the 3 point of closing :

3% of mortgage amount

0.03 * $176,000 = $5,280

D.) monthly payment :

(mortgage amount(1 + rate)) / 30* 12

176000(1 + 0.07)

($176,000 + $12320) / 360

$523

E.) Total cost of interest :

0.07 * 176000 = $12,320