Question

Chris and Beth Micelli made a $235,000 offer for the purchase of a new home, which was accepted. They made a 30% down payment and financed the rest. Using the closing cost table below, find the mortgage total if they include the closing costs in the mortgage amount.

Answer 1

The amount of mortgage will be the remaining amount after they made a downpayment.

Since the downpayment is 30%, the mortgage will be 70% of the purchased amount

So mortage will be :

mortgage = 0.70 x $235,000 = $164,500

From the closing cost table :

There are charges related to the mortgage (Points, Document stamp and Processing fee)

Adding these charges will be :

=2% + 0.30% + 1.10% = 3.4% of the mortgage

So this will give us :

= 0.034 x $164,500 = $5,593

Now to find the total mortgage, add the values in the closing cost table including the mortgage itself.

Total mortgage = 164500 + 5,593 + 252 + 65 + 325 + 212 + 410 + 350 + 450

Answer :

Total mortgage = $172,157