Answer:
Explanation:
2. Down payment is $40,000 Two and half times means 5/2 i.e. 5/2*$40,000 = $100,000...
5. One mortgage point costs 1% of the mortgage loan amount.
If Jamie Lee and Ross are putting a $40,000 down payment on a home with an accepted purchase price of $273,000, then the mortgage loan will be for $233,000.
$273,000 - $40,000 = $233,000.
Two points paid toward the mortgage will be a cost of $4,660 to the seller.
$233,000 x 0.02 = $4,660.
Typically, purchasing points means that a sum of money has been paid to the lender at closing to reduce the financing cost of the loan. The benefit of purchasing points is that it will secure a lower interest rate for the home buyers. In this sense, points are not put towards the mortgage loan itself, but are used to decrease overall expense to the home buyer over the term of a mortgage. A lower interest rate over the term of a mortgage can account for tens of thousands of dollars of saved interest.
If in this case the seller is simply giving money to the home buyers to put against the mortgage, then $4,660 will reduce the total loan amount to $228,340.
Although this question is somewhat ambiguously worded, it is more likely that the points are being purchased to secure a lower interest rate. While this doesn't represent an immediate windfall to the home buyers and does not decrease the mortgage loan amount, it would provide the greatest overall advantage to the home buyers.
I can't do 3,4,6 I'm very sorry about this man. I did my best but they come out wrong and I don't want to misguide you or mislead you in any way....
Very sorry!
