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Ira Lisetskai [31]
2 years ago
13

A.

Mathematics
1 answer:
Lorico [155]2 years ago
8 0

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

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