Question

Inez has to pay 4 percent in closing costs and 16 percent for the down payment on a purchase of $225,500 with an ARM. Over the life of the loan, she will pay $262,072.72. What is the total cost of her house?

Answer 1

Given:
4 percent of closing costs
16 percent for the down payment
$225,500 with an ARM
$262,072.72 total loan payment

225,500 *   4% =   $9,020
225,500 * 16% = $36,080

$9,020 + 36,080 + 262,072.72 = $307,172.72