Question

Your client has saved $1,860 for a down payment on a house. A government loan program requires a down payment equal to 3% of the loan amount. What is the largest loan amount that your client could receive with this program?

Answer 1

Answer:

5,580

Step-by-step explanation:

1860*3=5,580

Answer 2

If there is a $5,000 deposit, that means the amount to be mortgaged is $82,500. Calculating 3% of that amount:

0.03 * $82500 = $2475

The closing costs of the loan are $2,475. When they close the deal, they must bring that PLUS the down payment to the table, or $7,475.

(B)

If they are putting 30% down:

0.30 * $310000 = $93000

Add that to all of the other costs listed, they'll need to bring $94,165.

(C)

Discarding the $25,000, the Paltrows are asking for a $100,000 mortgage loan. 2% of that is $2,000, and so the total mortgage is for $102,000.

(D)

I can't answer this because I don't know how the interest is charged