Question

You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will roll the closing costs of $3,500 into the mortgage. Congratulations, your 15 year mortgage has been approved at an interest rate of 4.125%. (You must use the attached Excel loan amortization schedule). How much are you financing

Answer 1

Answer:

The amount of finance is $65,900

Explanation:

The amount of financing is the amount of the loan given by the mortgage finance provider which in this case is the cost of the property minus down payment  plus closing costs.

cost of property is  $78,000

downpayment is 20% of the property cost=20%*$78,000=$15,600

closing costs is $3,500

the amount of finance=$78,000-$15,600+$3,500=$65,900