Question

Darren is purchasing a home for $973000. He makes 25% down payment and obtains a 20 year fixed rate mortgage loan at 8% annual interest. His monthly payments are $6103.92. He pays an antangible tax of 0.7%. Which of the following is the total cost of principal, interest, down payment, and intangible tax?

Answer 1

Down payment
973,000×0.25=243,250

principle
973,000−243,250=729,750

interest
6,103.92×12×20−729,750=735,190.8

intangible tax
729,750×0.007=5,108.25

Total cost
243,250+729,750+735,190.8
+5,108.25=1,713,299.05