Question

You want to buy a $230,000 home. You plan to pay 20% as a down payment, and take out a 30 year fixed loan for the rest. Round all answers to the nearest cent as needed.

Answer 1

Amount of down payment = $46000

Mortgage needs = $184000

Solution:

From the given,

Cost of the house = $\ 230000$

Percentage of down payment = $20\%$

Number of years of fixed loan = 30

$\text { Total down payment }=\text { cost of the house } \times \text { Percentage of down payment }$

$\Rightarrow \frac{230000 \ \times 20}{100} \rightarrow 46000$

$\text {Mortgage needs}=\text { Total cost - Total down payment }$

$\Rightarrow 230000 \ -46000 \ =184000$

It can be concluded that the total down payment for the house and mortgage needs would be $\ 46000 \text{ and } \ 184000$